Bitcoin Price Rebounds Sharply Above $64,000 Amid Easing AI Software Sector Sell-Off
On Tuesday, Bitcoin (BTC) staged a notable recovery by climbing back above the $64,000 threshold after earlier steep losses during the day. The rebound comes as broader risk assets rally following several volatile sessions, and fears surrounding artificial intelligence (AI) related software sector sell-offs show signs of subsiding.
Bitcoin late Tuesday was trading around $64,200, up from a daily low near $62,500, though still modestly down about 0.75% over the past 24 hours. Ethereum (ETH) and Solana (SOL) similarly narrowed early double-digit percentage losses to more moderate declines, reflecting a market-wide partial bounce back from earlier drops.
The bitcoin Fear & Greed Index — a measure of investor sentiment — plunged sharply to a level of 5, indicating extreme fear. Such lows have not been seen at any point during significant past market downturns including the 2018 crypto bear market, the 2020 Covid-induced crash, or the protracted 2022 crypto winter. This extreme fear level suggests that some selling pressure may be easing as market participants pause.
Crypto prices have maintained a strong correlation with technology stocks, a dynamic visible again Tuesday as the iShares Software Sector ETF (IGV) gained 1.7%, rebounding after weeks of sharp declines. The recent slump in AI-related software shares had been prompted by investor worries that advancements in AI tools could disrupt traditional business models in software.
Signs of adaptation within the sector supported the bounce, with companies such as Intuit and DocuSign announcing new partnerships with Anthropic, an AI startup. These collaborations suggest incumbents may be able to incorporate AI capabilities rather than be displaced by them, helping calm market anxiety.
Safe-haven assets, meanwhile, saw losses amid easing geopolitical tensions. Gold declined 1.5% and crude oil fell 0.5% after Iran’s deputy foreign minister, Majid Takht-Ravanchi, indicated willingness to take steps toward a deal with the U.S., alleviating fears of immediate military conflict.
The broader equity market also found support. The tech-heavy Nasdaq 100 rose 1.1%, and the S&P 500 increased 0.8%. Within the crypto-related equities space, high-performance computing companies and bitcoin miners showed notable gains. Miners such as Bitdeer (BTDR), Cipher Mining (CIFR), Hut 8 (HUT), and TeraWulf (WULF) rallied between 6% and 10%, benefitting from their growing ties to AI data center infrastructure.
However, much of the rest of the crypto sector traded mildly lower, with major industry players including Coinbase (COIN), MARA Holdings (MARA), and Strategy (MSTR) falling around 0.5% to 1%.
This market action coincides with investors monitoring shifts among digital assets, including XRP, which jumped approximately 6% to around $1.42, driven by institutional and retail accumulation through newly launched exchange-traded funds (ETFs).
Overall, Tuesday’s trading reflects tentative stabilization in cryptocurrencies and related equities after periods of intense volatility driven by macroeconomic concerns and evolving market narratives around AI advancements and geopolitical risks. Bitcoin’s ability to reclaim and hold the $64,000 level will be a key signal watched by market participants in the near term.