Bitcoin is increasingly trading like a software stock, as its recent price correction has unfolded alongside a broader sell-off in the software sector. Market data suggests that bitcoin’s behavior is becoming more aligned with technology equities , particularly software-focused names , rather than moving independently as a distinct asset class.
On a 30-day rolling basis, bitcoin’s correlation with the iShares Expanded Tech Software ETF (IGV) has climbed to 0.73, according to research from ByteTree. This is a notably high level of correlation, indicating that price movements in bitcoin and software stocks are currently closely linked. Year to date, IGV has declined roughly 20%, while bitcoin is down about 16%, reinforcing the similarity in performance.
IGV is heavily weighted toward major software and services companies such as Microsoft, Oracle, Salesforce, Intuit, and Adobe. Weakness across these names has pulled the ETF lower, and bitcoin has increasingly mirrored this pressure.
This trend stands out because the broader technology market has remained relatively resilient. The Nasdaq 100 is only modestly below its all-time highs, suggesting that selling pressure has been concentrated in software rather than spread evenly across tech. Bitcoin, however, appears to be tracking this weaker segment instead of the broader index.
The primary reason software stocks are under pressure is the rapid advancement of artificial intelligence. Growing concerns around artificial general intelligence (AGI) have sparked fears that traditional software business models could face long-term disruption. As investors reassess valuations across the sector, software equities have borne the brunt of the sell-off.
Analysts argue that bitcoin may be caught in this same narrative. From a structural perspective, bitcoin can be viewed as internet-native, open-source software , placing it closer to technology assets than to traditional commodities or currencies. Over longer time frames, bitcoin’s performance has shown periods of high correlation with technology stocks, especially during market stress.
ByteTree also highlights that the average technology-sector bear market tends to last around 14 months. Since the current downturn began in October, this suggests that pressure on software stocks , and by extension bitcoin , could persist through much of 2026. That said, a resilient macroeconomic environment could still provide underlying support and limit downside risk.
In short, bitcoin is behaving less like an uncorrelated hedge and more like a high-beta technology asset. As long as software stocks remain under pressure from AI-driven uncertainty, bitcoin may continue to trade in close alignment with this troubled sector rather than breaking out on its own.