Crypto sentiment sinks into "extreme fear" as capital rotates to AI and RWA tokens
CoinDesk says crypto sentiment has slid into the "extreme fear" zone, with the Fear & Greed Index at 13. Bitcoin is trading around $60,000, down 22% year-to-date in the first half of 2026. Ethereum is off 29% in the first quarter, and most altcoins have moved lower as well.
The report argues that, judged against prior bear-market drawdowns that typically last 8 to 12 months, this decline could already be roughly halfway through, with a potential recovery window emerging in the second half of 2026. It also stresses that any rebound in risk appetite likely hinges on Bitcoin finishing its leg down and establishing a clear base.
Hyperliquid stands out against the tape
Despite broad market pressure, decentralized perpetuals venue Hyperliquid has pushed to fresh all-time highs and materially outperformed the wider market. The piece notes the platform's daily open interest has reached the billions of dollars, and Bitwise, 21Shares, and Grayscale have introduced ETF products tied to its ecosystem.
Commentary in the report pegs near-term support around $56. If Bitcoin weakens further, Hyperliquid could slide back into the $38 to $44 area, which is framed as a zone where investors may reassess positioning.
AI tokens remain a core narrative
AI-linked tokens are highlighted as one of the steadier pockets of the market. Bittensor has returned to roughly $180 to $190, near a multi-year support band. Venice is up about 500% over the past year and is currently holding around $15. Render has retraced to about $1.60.
If the broader market continues to correct, analysts cited in the report are watching lower levels, including Venice at $8 to $10 and Render near $1.30. The takeaway is that while AI tokens have pulled back with the market, they continue to command stronger thematic attention than many other segments.
RWA and Base ecosystem names in focus
Beyond AI, the report flags real-world asset (RWA) and Base ecosystem tokens. Aerodrome has fallen about 30% over the past month, with its price nearing levels seen ahead of two prior rebounds that followed periods of extreme panic. The article suggests that an expansion of the protocol to Circle's newly launched Arc blockchain and to Ethereum in July could catalyze fresh token demand.
In RWA, Ondo and Canton are also on the watchlist. Both are approaching key support areas, cited at $0.25 to $0.30 for Ondo and $0.14 to $0.15 for Canton. The commentary adds that tokenization may remain a central theme in the next market upswing.
The report does not call a definitive bottom. It argues that until Bitcoin stabilizes, most other tokens are unlikely to sustain a durable uptrend. Even so, in a period of deep pessimism, select resilient sectors and projects are beginning to draw increased attention.
