Bitcoin Retakes $64K as Fear Index Hits Historic Low of 5

If you own $100,000 worth of bitcoin, you lost about $750 yesterday. But the market might be telling a different story than your portfolio balance suggests.

Bitcoin pushed back above $64,000 Tuesday morning, recovering from its $62,500 low—a 2.7% bounce that caught many off guard. Ethereum and Solana also trimmed their early losses, suggesting the worst might be behind us.

The Paradox: Prices Rise, Fear Peaks

Here's where it gets interesting. Bitcoin's Fear & Greed Index crashed to 5—a level never seen during the 2018 bear market, the 2020 Covid crash, or even 2022's brutal crypto winter.

Think about that for a moment. Prices are recovering, but investor sentiment is at rock bottom. In contrarian investing terms, extreme fear often signals opportunity. When everyone's terrified, that's usually when smart money starts buying.

AI Panic Pause Lifts Crypto Miners

The broader tech selloff took a breather as fears about AI destroying software companies temporarily subsided. The iShares Software Sector ETF (IGV) gained 1.7% after weeks of punishment.

The catalyst? Companies like Intuit and DocuSign announced partnerships with AI firm Anthropic, showing that incumbents might adapt rather than get displaced. This "coexistence narrative" provided much-needed relief.

Crypto miners—increasingly tied to AI infrastructure—surged:

• Bitdeer up 10%
• Cipher Mining up 8%
• Hut 8 and TeraWulf up 6-7%

Meanwhile, pure-play crypto stocks lagged: Coinbase (-0.8%), MARA Holdings (-1%), and MicroStrategy (-0.5%) remained in the red.

Safe Havens Lose Their Shine

Traditional safe havens stumbled as risk appetite returned. Gold dropped 1.5% while crude oil slipped 0.5%. The trigger? Iran's deputy foreign minister signaled readiness for U.S. negotiations, easing geopolitical tensions.

The Nasdaq 100 climbed 1.1% and the S&P 500 gained 0.8%, confirming the risk-on mood.

What's your take: Is extreme fear your buying signal, or a warning to stay away?