Bitcoin FOMO Hits Two-Year High After $87K Breakout

Short Squeeze Drives Volume Jump

Market sentiment across the cryptocurrency space flipped sharply into bullish territory as bitcoin ($BTC) pushed past $87,300, propelled by a major short squeeze and a spike in social volume. According to data from crypto intelligence platform Santiment, crowd commentary around bitcoin and the broader market reached its highest concentration of positive language since December 2024.

That surge in optimism was also reflected in the Crypto Fear and Greed Index, which climbed from 51 a week earlier to 78 on Sept. 21. The 27-point increase moved the gauge from broadly neutral sentiment into the upper end of the greed category, just below the commonly used threshold for “extreme greed.” Taken together, the index and Santiment’s data point to a rapid and broad-based shift in market psychology rather than a rise in sentiment confined to a small group of traders.

In a post on X, Santiment noted that bullish keywords such as higher, bullish and above overwhelmed bearish sentiment on social channels as prices surged, reversing the extreme fear seen in late June when bitcoin fell below $60,000. Santiment said Fear of Missing Out (FOMO) had risen to its highest level in nearly two years, reinforcing the view that traders and investors were increasingly chasing the rally rather than simply responding to improving fundamentals.