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 fall another 3-8%; BTC at $104,500
• Fear & Greed reaches Extreme Fear for first time in months
• Berachain halts its blockchain after Balancer exploit
• Strategy announced its latest financial instrument STRE
• MegaETH prepares to issue $1.3B in refunds

😨 Crypto Slides into “Extreme Fear”

Crypto sentiment has collapsed.

Does that mean the bottom is close?

📌 What Happened

The Crypto Fear & Greed Index shows the market is now in “Extreme Fear” territory with a score around 21.

This marks a dramatic swing from recent “Greed” levels posted just last month and neutral ratings from just a few days ago.

For those unfamiliar, every day the index measures six key signals: volatility, volume/momentum, social media, surveys, dominance and trends.

Right now it reads:

• Volatility is elevated
• Volume and momentum have collapsed
• Social indicators are lighting up downward
• Bitcoin dominance is creeping higher, meaning money is fleeing alts into the perceived safety of BTC
• Trend data shows spikes in queries like “bitcoin price manipulation”

This comes just a day after new data surfaced showing that long-term Bitcoin holders sold ~$40B worth of Bitcoin in October (405,000).

🗣️ What They’re Saying

“Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.” – Alternative.ME site

🧠 Why It Matters

Sentiment often dictates behavior, which in turn influences flows, liquidity, and ultimately price.

• Risk to flow models: When fear rules, investors wait on the sidelines, even if ETFs are launching or infrastructure is expanding. That delays capital.
• Liquidity stress: Extreme fear often coincides with liquidations, margin blow-ups, and forced selling (see October 10th and its fallout)
• Narrative reset: We were talking “institutional adoption” and “ETF expansion.” Now the story shifts to “survival, consolidation, risk-management.”

So what does this mean for the near term?

Historically, when the index dips deep into fear, it can precede the next leg up, as long as other factors align.

That’s your “buy the fear” signal.

It’s hard to predict what that specific signal will be right now, but be on the lookout.

It might be as simple as monitoring outflows from the OG holders.

They just dumped $40B on the market with only ~$4B in ETF + DAT buy pressure to offset it. And Bitcoin still held at $107k.

That’s bullish.

Once those holders are done selling (or at least take a break), there will be a new foundation for Bitcoin to march upwards.

And once it gets back over $120k or so, the 4-year cycle will be officially broken. That’s the set up to grind higher in 2026.

As for now, expect more time in the fear range.

But this too shall pass…

🌎 Macro Crypto and Memes

A few Crypto and Web3 headlines that caught my eye:

• Crypto majors are down another 3-8% as the selloff continues; BTC -3% at $104,500, ETH -5% at $3,520, BNB -6% at $955, SOL -8% at $162
• DCR (+111%), DASH (_50%) and ICP (+30%) led top movers
• Liquidations topped $1.2B on Monday with longs taking 90% of the hit
• Crypto Fear & Greed entered Extreme Fear on Monday
• Balancer was exploited for ~$128M yesterday after an apparent vibe-coded hack
• Berachain halted its chain amid cascading pool drains across Ethereum and connected networks tied to the Balancer hack
• Hollywood.com is planning a prediction market alongside Crypto.com, focusing on entertainment bets across movies and TV
• Ripple launched prime brokerage services for digital assets in the US
• Strategy plans to issue 3.5M shares of 10% Series A Perpetual Stream Preferred Stock ($STRE), with proceeds earmarked for Bitcoin purchases
• US prosecutors are seeking the maximum 5-year sentence against Samurai Wallet founders
• The FTSE Russell will publish its global equity, FX and digital asset market index data directly on the blockchain via Chainlink

In Corporate Treasuries / ETFs

• The Bitcoin ETFs saw $185.5M in net outflows on Monday, with ETH seeing $135.7M in outflows
• The Solana Bitwise ETFs saw $70M in net inflows yesterday despite SOL falling 8%
• Strategy added 397 BTC last week (~$45.6M), as its treasury climbs to ~641,205 BTC; shares fade on headline
• BitMine bought 82,353 ETH last week (~$294M), though shares fell 8% added to treasury as shares drop ~8% on deal disclosure and soft tape
• Nasdaq reprimanded TON Strategy, saying its $558M stock-for-crypto raise lacking shareholder approval, no delisting action

In Memes

• Memecoin leaders are very red; DOGE -5%, Shiba -5%, PEPE -6%, PENGU -9%, BONK -9%, TRUMP -7%, SPX -17%, and FARTCOIN -18%
• jelly jelly (+77% to $195M) led Solana movers; ZEREBRO +35%, ARC +27% and SPSN (+100%) were other notable movers

💰 Token, Airdrop & Protocol Tracker

Here’s a rundown of major token, protocol and airdrop news from the day:

• MegaETH will refund $1.3B over the next 2 days coming out of its ICO oversubscription
• Stream Finance paused withdrawals after acknowledging a $93M loss
• SUI’s Momentum Finance began its Airdrop today
• A new mobile trading app ‘Share’ went live on Solana
• Liquid announced a $7.6M raise led by Paradigm to build out its mobile-first trading platform

🚚 What is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

• NFT leaders were very red; Punks -1% at 36.5 ETH, Pudgy -5% at 5.5, BAYC -9% at 5.8 ETH; Hypurr’s -12% at 845 HYPE
• No notable movers
• Adam Weitsman has taken over the CryptoDickButts project