The Crypto Fear and Greed Index, a tool that tracks crypto market sentiment, rose as high as 79 out of 100, a level not seen since Bitcoin reached $69,000 in November 2021. The increase observed on February 13 came as Bitcoin surpassed $50,000 the day before. 📈😃

More than two years later, the Crypto Fear and Greed Index remains in the “overambitious” zone. The index had reached “greed” levels, reaching 76 on January 11 in anticipation of the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. A month after the launch of U.S. ETFs, the short-term sell-off associated with approval news for these financial products appears to be over.

With Bitcoin reaching $50,000 yesterday, only 13% of the total supply is currently held at a loss. According to Glassnode data, approximately 87% of Bitcoin was acquired below $48,000. Short-term holders appear to be concentrated in the $40,000 to $45,000 range. Long-term holders make up the remaining 13% of the supply held in case of losses.

Crypto market sentiment is improving. In June 2022, following the collapse of Terraform Labs' UST stablecoin, the Crypto Fear and Greed Index dropped to 9 points, indicating the extreme fear prevalent among investors at the time. After FTX filed for bankruptcy in November 2022, the index fluctuated between 23 and 30 points, indicating fear. However, by mid-October 2023, sentiment began to improve along with the price of BTC and the index reached a neutral level of 52 points.