Correlation between BTC and software stocks deepens

The price correlation between Bitcoin and U.S. software stocks is deepening, CoinDesk reported. According to research from ByteTree, the correlation coefficient between Bitcoin and the iShares Expanded Tech Software ETF (IGV) has risen to 0.73. Year-to-date, the IGV has fallen approximately 20%, while Bitcoin has dropped 16%. ByteTree noted that the average bear market for tech stocks lasts about 14 months. Considering the current BTC downturn began last October, the firm suggested Bitcoin could continue to face downward pressure through the end of this year. Another analyst pointed out that because Bitcoin is fundamentally open-source software, it may not be immune to the AI-related challenges facing the software sector.