Bitcoin and software stocks, which have historically moved in tandem, are experiencing a significant divergence. Since May 14, the iShares Expanded Tech-Software Sector ETF (IGV) has gained approximately 12%, while Bitcoin has dropped about 10%. This marks one of the largest disconnects between the two assets in recent years.
The software sector's recovery, driven by a 36% rally in IGV since early April, contrasts sharply with Bitcoin's current trading near $73,000, which is nearly 10% below its 200-day moving average. The 20-day rolling correlation between Bitcoin and IGV has fallen to 0.58, a level not seen since October 2023. Historically, such low correlation periods have preceded significant price movements in Bitcoin, suggesting a potential major move could be on the horizon.
Bitcoin and Software Stocks Diverge as Historical Patterns Suggest Major Move
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