Investor sentiment in the cryptocurrency markets has recovered significantly in the last two weeks. The Crypto Fear and Greed Index, which was at 27 on August 12th and in the “fear” zone, rose to 74 on Tuesday, moving into the “greed” zone. The index then fell back to 65 on Wednesday.
The index reaching 74 marks its highest level since the period before the major market crash in October 2025. The indicator was last at similar levels on October 5, 2025. Just five days after that date, a sharp sell-off liquidated approximately $19 billion in leveraged positions.
The shift in market sentiment has also been reflected in the price performance of crypto assets. Bitcoin, which traded below $68,000 last week, quickly approached $80,000. Some major cryptocurrencies even saw increases of up to 70%.
Meme tokens have particularly stood out in the altcoin market. While Dogecoin gained approximately 24% in value over the past week, some smaller-scale meme coins with lower trading volumes saw even sharper increases. Thinking Cat rose 131%, Cash Cat 113%, while Dogecoin nearly doubled in value.
Analysts view the shift of capital towards small-cap tokens with low trading volume as a sign of a strong return in risk appetite. However, this same movement is also interpreted as increasing the risk of a correction due to market overheating.
The next major test for the markets is expected to be Federal Reserve Chairman Kevin Warsh’s first keynote address at the Jackson Hole meeting on Friday. Warsh’s messages regarding monetary policy are said to directly impact risk appetite in the cryptocurrency market.
*This is not investment advice.