Since the US-Iran conflict erupted on February 28, Bitcoin has shown relative strength against software stocks. During this period, Bitcoin rose over 5%, surpassing $69,000, while the iShares Expanded Tech-Software Sector ETF (IGV), which tracks software stocks, fell more than 2%. Data indicates that the correlation between Bitcoin and IGV, which was near 1.0 in early February, dropped sharply to 0.13 following the conflict, before recovering to approximately 0.7.
Market concerns over AI competition potentially squeezing profits and valuations of SaaS and other software companies have contributed to this trend. Meanwhile, Bitcoin has been perceived as a "macro asset" amid geopolitical uncertainties, enhancing its appeal to investors.
Bitcoin Outperforms Software Stocks Amid US-Iran Tensions
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