Selling momentum cooled Tuesday after bitcoin’s Fear & Greed Index plunged to unprecedented lows, signaling deeply entrenched bearish sentiment that may have helped fuel a short-term rebound.
Bitcoin (BTC) rose back above $64,000 during early U.S. trading, tracking a wider bounce across risk assets following several volatile sessions. The cryptocurrency recently changed hands near $64,200, down 0.75% over the past 24 hours but significantly above its session low around $62,500. Ether (ETH) and solana (SOL) likewise trimmed substantial earlier losses.
The sector’s tight linkage to technology equities remained evident. Software stocks, represented by the iShares Software Sector ETF, climbed 1.7% after enduring sharp declines driven by concerns that artificial intelligence could disrupt established revenue models.
Sentiment improved after companies including Intuit and DocuSign announced partnerships with AI startup Anthropic, reinforcing the view that incumbents may adapt to AI advancements rather than be overtaken by them.
Traditional safe-haven assets moved lower. Gold dropped 1.5%, while crude oil slipped 0.5% amid signs of easing geopolitical tensions. Reports cited remarks from Iran’s deputy foreign minister, Majid Takht-Ravanchi, who said the country is prepared to take necessary steps to secure a deal with the U.S., calming fears of an imminent military confrontation.
U.S. equity benchmarks advanced alongside crypto. The Nasdaq 100 gained 1.1%, while the broader S&P 500 rose 0.8%.
High-performance computing companies and bitcoin miners — sectors increasingly tied to AI-focused data center expansion — joined the rally. Shares of Bitdeer, Cipher Mining, Hut 8 and TeraWulf surged between 6% and 10%.
Elsewhere, performance among crypto-related equities was mixed. Coinbase, MARA Holdings and Strategy edged lower by 0.5% to 1%, slightly underperforming the broader market recovery.
