Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Bitcoin's correlation with troubled software
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Bitcoin's correlation with troubled software
Bitcoin's correlation with troubled software stock sector is growing
Bitcoin's correlation with troubled software stock sector is growing
Software stocks are thought to be facing an existential threat from the rise of AI, and Bitcoin, noted one analyst, is just open-source software.
By James Van Straten|Edited by Stephen Alpher
Feb 4, 2026, 4:26 p.m.
Make us preferred on Google
BTC vs IGV (TradingView)
What to know:
- Bitcoin's correlation with the iShares Expanded Tech Software ETF (IGV), has risen to 0.73, noted by ByteTree Research.
- At its core, suggested another analyst, Bitcoin is just open source software, so maybe not immune to the AI issues facing software stocks.
Bitcoin is increasingly behaving like a software stock, with its latest correction unfolding alongside the broader software sell-off.
The relationship between bitcoin and software equities has strengthened notably. On a 30-day rolling basis, bitcoin’s correlation with the iShares Expanded Tech Software ETF, (IGV), stands at a high 0.73, according to ByteTree. The IGV is down around 20% year to date, while bitcoin has fallen 16%.
STORY CONTINUES BELOW
No te pierdas otra historia.Suscríbete al boletín de Crypto Daybook Americas hoy. Ver todos los boletines
Inscríbeme
IGV is heavily weighted toward software and services names such as Microsoft (MSFT), Oracle (ORCL), Salesforce (CRM), Intuit (INTU) and Adobe (ADBE).
While the technology sector appears relatively resilient at the headline level — the Nasdaq 100 (QQQ), is only around 4% below its record high — software stocks have absorbed most of the selling pressure, and bitcoin is increasingly trading in line with this weaker pocket of the market rather than the broader index.
As for why software names are getting hammered, the answer is simple: AI. The rapid progress towards fully functioning artificial general intelligence (AGI) is currently being considered an existential issue for software.
“There can be no doubt that bitcoin has been caught up in the technology selloff," said ByteTree. "At its heart, bitcoin is an internet stock. Software stocks have been the most recent casualty, and the price of bitcoin has shown similar performance over the past five years, with high correlation.”
ByteTree also notes that the average technology bear market lasts about 14 months. With this current downturn having started in October, this suggests pressure could persist through much of 2026. However, ByteTree notes that a resilient economic backdrop could provide support for bitcoin.
"Bitcoin is just open-source software," said Van Eck's Matthew Sigel.
Bitcoin NewsTechnology
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
You May Also Like
Is Doge Losing Steam As Traders Choose Pepeto For The Best Crypto Investment?
The post Is Doge Losing Steam As Traders Choose Pepeto For The Best Crypto Investment? appeared on BitcoinEthereumNews.com. Crypto News 17 September 2025 | 17:39 Is dogecoin really fading? As traders hunt the best crypto to buy now and weigh 2025 picks, Dogecoin (DOGE) still owns the meme coin spotlight, yet upside looks capped, today’s Dogecoin price prediction says as much. Attention is shifting to projects that blend culture with real on-chain tools. Buyers searching “best crypto to buy now” want shipped products, audits, and transparent tokenomics. That frames the true matchup: dogecoin vs. Pepeto. Enter Pepeto (PEPETO), an Ethereum-based memecoin with working rails: PepetoSwap, a zero-fee DEX, plus Pepeto Bridge for smooth cross-chain moves. By fusing story with tools people can use now, and speaking directly to crypto presale 2025 demand, Pepeto puts utility, clarity, and distribution in front. In a market where legacy meme coin leaders risk drifting on sentiment, Pepeto’s execution gives it a real seat in the “best crypto to buy now” debate. First, a quick look at why dogecoin may be losing altitude. Dogecoin Price Prediction: Is Doge Really Fading? Remember when dogecoin made crypto feel simple? In 2013, DOGE turned a meme into money and a loose forum into a movement. A decade on, the nonstop momentum has cooled; the backdrop is different, and the market is far more selective. With DOGE circling ~$0.268, the tape reads bearish-to-neutral for the next few weeks: hold the $0.26 shelf on daily closes and expect choppy range-trading toward $0.29–$0.30 where rallies keep stalling; lose $0.26 decisively and momentum often bleeds into $0.245 with risk of a deeper probe toward $0.22–$0.21; reclaim $0.30 on a clean daily close and the downside bias is likely neutralized, opening room for a squeeze into the low-$0.30s. Source: CoinMarketcap / TradingView Beyond the dogecoin price prediction, DOGE still centers on payments and lacks native smart contracts; ZK-proof verification is proposed,…
Share
BitcoinEthereumNews2025/09/18 00:14
The Definitive Analysis On Whether XRP Can Realistically Reach $5
The post The Definitive Analysis On Whether XRP Can Realistically Reach $5 appeared on BitcoinEthereumNews.com. XRP Price Prediction 2026-2030: The Definitive Analysis
Share
BitcoinEthereumNews2026/02/08 02:11
XRP Millionaires Are Back to Business — BlackRock XRP ETF Whispers Swirl ⋆ ZyCrypto
The post XRP Millionaires Are Back to Business — BlackRock XRP ETF Whispers Swirl ⋆ ZyCrypto appeared on BitcoinEthereumNews.com. Advertisement     XRP
Share
BitcoinEthereumNews2026/02/08 02:31