Crypto markets closed out their strongest week in years on Thursday, with sentiment, prices, and institutional flows all moving in the same direction at once. Sentiment Swings From Fear to Gr
Crypto markets closed out their strongest week in years on Thursday, with sentiment, prices, and institutional flows all moving in the same direction at once.
The @CoinMarketCap fear and greed index hit 73 today, its highest reading of 2026, after sitting at 36 just one week ago. The CMC Fear and Greed Index measures prevailing sentiment across the cryptocurrency market on a scale of 0 to 100, where a lower value indicates extreme fear and a higher value indicates extreme greed. A swing of 37 points in seven days is an unusually sharp reversal and puts the market firmly in greed territory for the first time this year.
The broader numbers back that up. Total crypto market capitalisation rose 5.6% to $2.6 trillion over the week, with $BTC climbing back above $77,000. Bitcoin, Ethereum, and XRP all posted significant weekly gains, with ETH up over 25% and XRP up nearly 30%.
The rally did not arrive in a vacuum. Three macro and regulatory developments converged to push markets higher.
The most significant was a move by the US Treasury. The Treasury Department announced it would at least double the size of its long-end liquidity support buyback operations, raising the per-operation maximum from $2 billion to at least $4 billion for securities in the 10-to-20-year and 20-to-30-year maturity sectors.The 30-year Treasury yield fell from a 19-year high of 5.34% to roughly 5.196% immediately following the announcement, while the 10-year note dropped to 4.647%.The Treasury buyback led to yield compression, easing financial conditions and triggering a risk-on rotation into crypto, a move that was accelerated by $1.44 billion in forced short liquidations across major exchanges.
On the regulatory front, the White House stepped up pressure on Congress over the CLARITY Act, legislation that would establish a clearer framework for digital asset classification in the United States. Alongside that, Bitcoin spot ETFs recorded their largest single-day inflows since May, reflecting renewed institutional appetite.
Taken together, the three catalysts produced a textbook sentiment reset. When confidence improves, capital can return quickly, and that is exactly what this week demonstrated. Whether the greed reading of 73 marks the start of a sustained move higher or simply a short-covering rally will depend on whether the policy tailwinds hold through September.
Sources:CoinMarketCap Fear and Greed IndexThe Treasury buyback trade: how $4 billion in bond operations moved Bitcoin 8% in a day (CryptoNews)Crypto market rallies on US Treasury bond buybacks (FXStreet)
