Market selling pressure eased Tuesday after bitcoin’s Fear & Greed Index plunged to record-low levels, reflecting extreme pessimism that may have set the stage for a short-term rebound.
Bitcoin (BTC) moved back above $64,000 during early U.S. trading, aligning with a broader recovery across risk assets after several turbulent sessions. The cryptocurrency recently traded near $64,200, down 0.75% over the past 24 hours but well off its intraday trough around $62,500. Ether (ETH) and solana (SOL) also trimmed substantial earlier losses.
The asset class continued to track movements in technology equities. Software stocks, represented by the iShares Software Sector ETF, gained 1.7% following steep declines driven by fears that artificial intelligence could undermine established business models.
Sentiment improved after companies including Intuit and DocuSign announced collaborations with AI startup Anthropic, suggesting incumbent firms may successfully incorporate AI tools rather than be disrupted by them.
Meanwhile, traditional defensive assets retreated. Gold fell 1.5%, and crude oil slipped 0.5% as geopolitical tensions appeared to cool. Reports cited remarks from Iran’s deputy foreign minister, Majid Takht-Ravanchi, indicating the country is “ready to take any necessary step to reach a deal with the U.S.,” easing concerns about a near-term military escalation.
Equity benchmarks advanced alongside crypto. The Nasdaq 100 rose 1.1%, while the broader S&P 500 added 0.8%.
Companies tied to high-performance computing and bitcoin mining — industries increasingly linked to AI data center demand — also rallied. Shares of Bitdeer, Cipher Mining, Hut 8 and TeraWulf surged between 6% and 10%.
Elsewhere, crypto-related equities were mixed. Coinbase, MARA Holdings and Strategy edged lower by 0.5% to 1%, slightly underperforming the broader market rebound.
