Crypto Fear and Greed Index Surges to Record High Since Bitcoin's All-Time High in 2021

The Crypto Fear and Greed Index Surges to Highest Level Since Bitcoin’s Peak

The Crypto Fear and Greed Index, a tool that tracks market sentiment in the crypto industry, has reached a level of 79 out of 100. This is the highest level seen since Bitcoin reached its peak at $69,000 in November 2021. The increase in the index was observed on February 13, following Bitcoin’s rise above $50,000.

Crypto Fear and Greed Index Enters ‘Extreme Greed’ Zone

For the first time in over two years, the Crypto Fear and Greed Index has entered the “extreme greed” zone, which occurs when the index value exceeds 74. Previously, the index reached levels of “greed” in January 2024 amid excitement about the potential approval of Bitcoin exchange-traded funds (ETFs) in the US.

The recent surge in greed suggests that the short-term selling associated with the approval news of ETFs has subsided. Cathie Wood, CEO of ARK Invest, had predicted that investors might “sell the news” shortly after approval but emphasized that it would be temporary.

Bitcoin Holders Show Positive Sentiment

As Bitcoin surpassed $50,000, only around 13% of the total supply is held at a loss. Data from Glassnode shows that approximately 87% of Bitcoin was acquired below the $48,000 threshold. Short-term holders are concentrated within the $40,000 to $45,000 range while long-term holders make up the remaining 13% held at a loss.

Improvement in Crypto Market Sentiment

In June 2022, during the collapse of UST stablecoin from Terraform Labs and FTX’s bankruptcy filing in November 2022, the Crypto Fear and Greed Index reflected extreme fear among investors. However, sentiment began to recover in mid-October 2023 as Bitcoin’s price increased. By November and December, the anticipation of spot Bitcoin ETF approval fueled further growth in the “greed” zone of the index.

The Crypto Fear and Greed Index is derived from various signals that influence trader and investor behavior, including Google Trends, surveys, market momentum and dominance, social media trends, and market volatility.