I was looking at the correlation data and noticed something interesting: Bitcoin is moving increasingly in sync with the software sector. The correlation with the iShares Expanded Tech Software ETF has reached 0.73, which is really high. Essentially, Bitcoin is open-source software, so maybe it's not so surprising that it's suffering from the same issues affecting software stocks.

The software sector has taken a big hit lately — down 20% this year — while Bitcoin has fallen 16%. Names like Microsoft, Oracle, Salesforce are all under pressure. Another analyst pointed out that Bitcoin is behaving more and more like a tech stock, and its recent correction is tracking the broader software sell-off.

The reason? AI. The market is worried about how artificial intelligence will transform the software industry. Meanwhile, the Nasdaq 100 remains relatively resilient — only 4% below its highs — but software is taking the hardest hits. Instead of following the broader tech index, Bitcoin is tracking this weaker part of the market.

According to analyses, tech bear markets typically last 14 months. If the decline started in October, we could see pressure lasting well into 2026. However, a resilient economy could still support Bitcoin in the long term. Currently, we're at 71.47K with a -1.92% change in the last 24 hours.