Bitcoin sentiment has turned sharply bullish after the cryptocurrency rose above $87,300, with a major short squeeze and a surge in social media discussion driving the move.
Data from crypto intelligence platform Santiment shows that positive language around bitcoin (BTC) and the wider market reached its highest concentration since December 2024. The change marks a significant reversal from the extreme fear recorded in late June, when bitcoin fell below $60,000.
The shift was also reflected in the Crypto Fear and Greed Index, which rose from 51 a week earlier to 78 on Sept. 21. That 27-point increase moved the measure from neutral territory into the upper end of the “greed” category, just below the usual threshold for “extreme greed”.
Santiment said on X that bullish terms including “higher”, “bullish” and “above” had overwhelmed bearish language on social media as prices moved higher. It added that Fear of Missing Out (FOMO) had reached its highest level in nearly two years, suggesting traders and investors were increasingly chasing the rally rather than simply reacting to stronger fundamentals.
The advance was accelerated by heavy liquidations in the derivatives market. About $648 million in short positions were wiped out over a 24-hour period, forcing traders who had bet on falling prices to buy assets to close their positions.
At the same time, total cryptocurrency trading volume increased by 39%. The combination of forced buying and higher activity helped push prices up further and encouraged additional participation from retail and institutional traders.
Despite the large-scale short liquidations, leverage in the market continued to increase. Open interest rose by 7.6% to about $156 billion, according to Santiment, indicating that traders were adding new leveraged positions rather than reducing their exposure.
The pattern began with a short squeeze, which increased trading activity and attracted more leveraged traders seeking to benefit from the rally. Santiment’s social-dominance data shows how sharply this differs from market behaviour in late June, when fear dominated discussion and bitcoin’s move below $60,000 eventually marked a local low.
A separate burst of FOMO in mid-August briefly slowed the rally as prices attempted to move higher. On Sept. 21, however, social sentiment recorded its strongest bullish spike since December 2024 as BTC moved above $87,000.
Santiment said historically high levels of agreement on social media can act as a contrarian signal. Widespread confidence that prices will move “higher from here” can occur near local peaks or during periods of consolidation, when crowded positions leave less liquidity to support further immediate gains.
A Fear and Greed reading of 78 does not guarantee an imminent reversal, and markets can continue rising while remaining in the greed category. It does, however, indicate that the balance between potential reward and risk is less favourable than it was when fear dominated sentiment.
The broader outlook remains bullish but increasingly crowded. Further gains would be more convincing if accompanied by sustained spot-market demand, controlled funding rates and slower growth in open interest. A failure to hold the breakout level while leverage and liquidations continue to rise could increase the risk of a pullback or wider liquidation cascade.
Bitcoin has risen by as much as 37% since Jim Cramer told CNBC viewers on Aug. 3 that he was dumping…
