Bitcoin Reclaims $66K But Fear Index Hits 6 in 7-Day Panic

Bitcoin dropped to $64,400 on Sunday before clawing back above $66,000 in pre-market trading. But here's the twist: while the price recovered, investor sentiment remains frozen in terror. The Fear and Greed Index has plummeted to 6, marking seven consecutive days of "extreme fear."

The Numbers Tell a Different Story

Surface-level recovery masks deeper concerns. MicroStrategy (MSTR) trades 2% lower despite preparing to announce its 100th bitcoin purchase since 2020. Fellow crypto stocks Marathon (MARA), Coinbase (COIN), and Bullish (BLSH) are each down roughly 2%, trimming earlier steeper losses but still bleeding.

The altcoin carnage tells the real story. Solana (SOL) and Sui (SUI) plunged 7-8% in thin liquidity, contributing to $270 million in forced liquidations. When markets are this fragile, even small shocks create outsized damage.

Trump's Tariff Gambit Hits Crypto

The selloff traces directly to President Trump's proposed 15% global tariffs and escalating U.S.-Iran tensions. Tariffs traditionally fuel inflation expectations, potentially forcing the Fed's hand toward tighter monetary policy – bad news for risk assets like crypto.

Yet the market's response reveals crypto's identity crisis. Gold soared above $5,100 per ounce, silver approached $87, and the DXY dollar index held firm near 98. Traditional safe havens are winning while bitcoin – supposedly "digital gold" – gets treated like a tech stock.

Winners, Losers, and Hidden Opportunities

The winners are clear: precious metals and the dollar. The losers? Crypto assets still dancing to the stock market's tune. The Invesco QQQ fell just 0.3%, while the tech-heavy IGV dropped 1% near $80, underscoring crypto's continued correlation with software stocks.

But some players see opportunity in the chaos. MicroStrategy's impending 100th bitcoin purchase signals institutional conviction amid retail panic. AI-focused miners like IREN and Cipher Mining (CIFR) are outperforming pure crypto plays, down roughly 1% versus 2% for traditional miners.

The dip-buying interest emerging at lower levels suggests institutional money is stepping in while retail investors flee.