Selling pressure eased on Tuesday after bitcoin’s Fear & Greed Index dropped to historically low levels, highlighting extreme bearish sentiment that may have helped spark a relief bounce.
Bitcoin (BTC) reclaimed the $64,000 mark in early U.S. hours, moving in tandem with a broader recovery across risk assets after several choppy sessions. The cryptocurrency recently traded around $64,200, down 0.75% over the past 24 hours but well above its intraday low near $62,500. Ether (ETH) and solana (SOL) also pared sharp early declines.
The asset’s correlation with technology stocks remained evident. Software names, tracked by the iShares Software Sector ETF, rose 1.7% after suffering steep losses amid concerns that advances in artificial intelligence could erode traditional software business models.
Confidence improved after firms such as Intuit and DocuSign unveiled partnerships with AI startup Anthropic. The announcements suggested established players are positioning to integrate AI capabilities rather than be displaced by them.
Meanwhile, traditional safe-haven assets weakened. Gold declined 1.5% and crude oil slipped 0.5% as geopolitical tensions appeared to ease. Reports cited comments from Iran’s deputy foreign minister, Majid Takht-Ravanchi, who said Tehran is prepared to take necessary steps to reach a deal with the United States, tempering fears of imminent military escalation.
U.S. equities moved higher alongside crypto. The Nasdaq 100 advanced 1.1%, while the broader S&P 500 gained 0.8%.
High-performance computing companies and bitcoin miners — sectors increasingly connected to AI-driven data center demand — participated in the rally. Shares of Bitdeer, Cipher Mining, Hut 8 and TeraWulf climbed between 6% and 10%.
Elsewhere, performance among crypto-linked stocks was more subdued. Coinbase, MARA Holdings and Strategy posted modest declines of 0.5% to 1%, slightly lagging the broader rebound.
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