Key highlights:
- Bitcoin has ended a lengthy extreme greed drought as market sentiments race toward euphoria
- Previous four droughts have preceded an extended rally for Bitcoin
- Bitcoin is inching toward the $80,000 price point but fears of a steep slump continues to trail the asset
Bitcoin’s Fear & Greed Index has returned to extreme greed after a 317-day drought, marking the fifth-longest stretch in the indicator’s history without a reading of 75 or higher. Galaxy Research data shows the index reached 77 on August 20, its highest level in more than a year, as Bitcoin pushed market sentiment back toward euphoria.
A 317-day sentiment drought ends for Bitcoin
The Bitcoin Fear & Greed Index, a tool measuring market sentiment, soared to its highest level in over a year on the back of BTC’s mid-week rally. According to Galaxy Research, the index reached 77, entering “extreme greed levels” and breaking a long streak for the asset.
Source: Galaxy Research
The latest streak began on October 6, 2025, when the index last recorded extreme greed before spending the next 317 days below the threshold. The 317-day streak falls behind only four longer periods, including droughts of 636, 558, 469, and 357 days.
Galaxy Research noted that the comparison becomes more notable when viewed against Bitcoin’s market cycles. Each of the four extreme-greed droughts stretched across a major bear market before ending as the market recovered.
Source: Galaxy Research
The longest streak lasted 636 days from April 2021 to January 2023, covering Bitcoin’s collapse from its 2021 bull-market highs and the subsequent recovery from the 2022 bear market. The other long droughts followed similar patterns, with the 558-day streak from 2013 to 2015, the 469-day streak from 2017 to 2019, and the 357-day streak from 2011 to 2012 all ending after prolonged periods of weakness.
“Note the pattern the top-5 makes,” wrote Galaxy Research. “Every previous 300+ day drought spanned a full bear market and ended with a recovery. Wednesday’s print closed the fifth.”
At press time, the Bitcoin Fear & Greed index cooled to 72, still within the greed territory. Previously, Galaxy noted that “crypto is dead” chatter reaching an all-time high always preceded a strong rally for digital assets.
Bitcoin shakes off bearish with strong rally
The drought came to an end after Bitcoin’s strong price spurt sent the asset hurtling toward the $80K mark. Previously, BTC traded sideways for a month before breaching the $70,000 psychological barrier on Wednesday.
BTC reached an intraday trading high of $79,456, sparking speculation of an imminent run beyond $80,000. Over the last seven days, BTC has gained an impressive 22%, setting the pace for the rest of the cryptocurrency market.
Ethereum (ETH), the largest altcoin by market capitalization, is trading at $2,383 after recording similar double-digit growth over the week. BNB, XRP and SOL rode the wave of Bitcoin’s rally to post impressive figures as capital flowed into the cryptocurrency market from waning equities.
However, several pundits have warned of an impending pullback, noting that cryptocurrencies are not out of the woods yet. American economist Peter Schiff argued that the recent rally is a fakeout, predicting a steep price crash in the coming days.
