The Crypto Fear and Greed Index, a market sentiment tracking tool for the crypto industry, has surged to 79 out of 100, a level not seen since Bitcoin peaked at $69,000 in November 2021. This increase comes as Bitcoin surpassed the $50,000 mark on February 12.

For the first time in over two years, the index is in the "extreme greed" zone, which occurs when its value exceeds 74. This follows the launch of US ETFs a month ago, suggesting that short-term selling associated with the approval news of these financial products has subsided.

The current "extreme greed" indicator coincides with Bitcoin hitting $50,000, with only around 13% of the total supply now held at a loss. Data from Glassnode shows that approximately 87% of Bitcoin was acquired below the $48,000 threshold.

The Crypto Fear and Greed Index has been improving since June 2022, when it plummeted to a minimum value of 9 points following the collapse of the UST stablecoin from Terraform Labs. By mid-October 2023, the sentiment began to recover alongside BTC's price, reaching a neutral level of 52 points. The index is derived from various signals influencing the behavior of traders and investors, such as Google Trends, surveys, market momentum and dominance, social media trends, and market volatility.