The cryptocurrency market has staged one of its most aggressive weekly rallies in years, adding approximately $474 billion to its total market capitalization over the past seven days. According to data highlighted by SolanaFloor, the total market cap rose by 22%, marking the largest weekly gain since February 2021. The rapid repricing has pushed the Crypto Fear and Greed Index deep into extreme greed territory, with readings at 81 on CoinMarketCap and 83 in SolanaFloor's cited analysis.
The shift in sentiment has been unusually fast. Just one month ago, the index sat at 36, in firm fear territory; a week ago it was 41, barely neutral. By Sunday evening it reached 81, a 45-point climb in 30 days. The index's lowest 2026 reading was 5 on February 5, deep in extreme fear, making the move from capitulation to greed one of the quickest sentiment reversals since records began. Alternative.me, which tracks the indicator with a different methodology, still places the mood in greed rather than extreme greed, but the direction is consistent.
Bitcoin has led the breakout. The largest cryptocurrency gained roughly 24% in a week, outpacing the broader market and increasing its share of total crypto capitalization. The trigger came last Wednesday, when the U.S. Treasury announced it would double its long-bond buybacks from $2 billion to $4 billion per operation beginning September 9. The policy move weakened the dollar and pushed investors toward bitcoin as an inflation hedge. As bitcoin broke above $70,000, a short squeeze liquidated more than $4 billion in crypto shorts over two to three days, accelerating the rally.
Institutional flows also strengthened. Bitcoin ETFs recorded their largest single day of inflows since May, while Bitcoin and Ethereum ETFs together attracted roughly $2.3 billion in assets. Despite the bullish momentum, analysts caution that extreme greed readings often precede sharp corrections. Traders are being urged to monitor altcoin performance, trading volumes, and sentiment indicators closely in the coming weeks.
