Market Sentiment - Investor fear in the crypto market has intensified, reaching levels not seen since the collapse of the Terra Luna ecosystem in mid-2022, driven by a macro-led selloff [1] - The Crypto Fear and Greed Index has plummeted to 9, indicating "Extreme Fear" and marking its lowest level in 42 months [1] Bitcoin Performance - Bitcoin's price has fallen to a 15-month low of $60,255, representing a 52.2% decline from its all-time high of $126,080 in October 2025 [1] - Aggregated open interest for Bitcoin futures has dropped to $21.96 billion, a 15-month low, indicating a mass exodus of speculative capital [4] Macroeconomic Factors - The U.S. Dollar Index (DXY) has increased from 95.205 to 97.685, tightening financial conditions and contributing to the downturn in the crypto market [3] - Analysts highlight that Federal Reserve policy uncertainty and geopolitical tensions are exacerbating market stresses, with potential for Bitcoin to decline further [2] Market Dynamics - The correlation between crypto and equities remains strong, with macroeconomic factors playing a significant role in the current downturn [3] - Options markets show a defensive tilt, with traders paying a premium for bearish bets as downside protection, indicated by Bitcoin's 7-day and 30-day 25-delta skew falling below -28 and -24, respectively [4] Sector-Specific Concerns - The primary driver of the current market sentiment is a risk-off wave stemming from fears in the tech and AI sectors, leading to doubts about the sustainability of Big Tech's massive capital expenditures [5]

Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. Subscribe to the Morning Minute on Substack. GM! Today’s top news: Crypto majors rebound after recent selloff; BTC back to $92k, SOL leads Solana announced the launch of Firedancer live on mainnet YouTube announced creator payments in stablecoins The DTCC has been cleared to offer tokenization services by the SEC Coinbase is reportedly lau ...