Bitcoin's price retreated to just above $71,000 on Thursday, following a brief rally that saw it challenge $74,000. This pullback comes as the iShares Expanded Tech-Software Sector ETF (IGV) rose over 2%, highlighting a divergence between the two markets that have been closely correlated in recent months. The broader equity markets also saw declines, with the Dow Jones Industrial Average down 1.4% and the S&P 500 down 0.7%, while oil prices surged 5.3% amid ongoing geopolitical tensions.
Traders are cautious ahead of the U.S. jobs report for February, with expectations that the Federal Reserve will maintain current interest rates. Despite the recent dip, Bitcoin has seen nearly $2 billion in inflows into spot ETFs over the past week, suggesting underlying market strength. Analysts at Bitfinex noted an increase in spot market activity, indicating that the recent price movements were driven by market buyers rather than speculative leverage.
Bitcoin Retreats to $71,000 Amid Divergence with Software Sector
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