Crypto Greed Gauge Climbs to Highest Level Since Before October’s $19B Rout

Crypto traders have rapidly shifted from caution to risk-taking, with the market’s Fear & Greed Index reaching its highest level since just before last year’s record liquidation event.

The widely followed Crypto Fear & Greed Index, calculated by software firm Alternative.me, climbed to 74 on Tuesday after standing at 27 on Aug. 12. The reading later eased to 65 on Wednesday. The index remained in fear territory from late July through Aug. 19 and fell as low as 25 on Aug. 6, a level classified as “extreme fear.”

The indicator measures sentiment on a scale of zero to 100 using factors including Bitcoin’s volatility and trading momentum, which account for much of its weighting. It also considers social media activity, Bitcoin’s market share and Google search trends. Readings above 50 are categorized as greed.

Because of how it is calculated, the gauge reflects current market behavior rather than predicting where prices are headed.

The index was last at a comparable level on Oct. 5, 2025, just days before a massive market sell-off wiped out roughly $19 billion in leveraged positions in a single session. That remains the largest liquidation event of its kind on record.

Risk Appetite Returns Across Crypto

The sharp change in sentiment has coincided with broad gains across digital assets. Bitcoin advanced from below $68,000 last week to nearly $80,000, while several major tokens posted gains of as much as 70%.

Investors have increasingly returned to the so-called debasement trade after speculative attention had been concentrated for months on artificial intelligence, memory-chip and semiconductor stocks.

Risk-taking has been even more pronounced among smaller cryptocurrencies. Dogecoin has risen about 24% over the past week, while lesser-known memecoins have recorded much larger gains.

Thinking Cat surged 131% over seven days, Cash Cat climbed 113%, and Dog (Bitcoin) nearly doubled during the same period.

The flow of capital into thinly traded and highly speculative tokens suggests that investors are becoming increasingly comfortable taking on risk. However, extremely high sentiment readings can also signal excessive optimism and raise the possibility of a market correction.

Fed Chair’s Jackson Hole Speech in Focus

The next major test for market sentiment comes Friday, when Federal Reserve Chair Kevin Warsh delivers his first Jackson Hole keynote as chair.

Investors will be watching for signals about the outlook for interest rates and inflation following weeks of volatility in long-term Treasury yields. A recent decline in those yields helped support Bitcoin’s rally from below $68,000.

With crypto sentiment now firmly back in greed territory, traders will be looking to the Fed’s next signals to determine whether the rally can continue or whether risk appetite has moved too far, too quickly.