Bitcoin Correlating with Troubled Software Sector

[Para 1: The Lead] Bitcoin is increasingly mirroring the performance of the software sector, with both experiencing a downturn. The 30-day rolling correlation between Bitcoin and the iShares Expanded Tech Software ETF (IGV) has reached a high of 0.73, reflecting a strong link between the two markets. As of today, February 4, 2026, the IGV is down 20% year-to-date, while Bitcoin has declined 16%. [Para 2-3: Supporting details & Context] This correlation is particularly evident as the software sector, heavily weighted with names like Microsoft (MSFT), Oracle (ORCL), Salesforce (CRM), Intuit (INTU), and Adobe (ADBE), is absorbing significant selling pressure. Despite the broader Nasdaq 100 (QQQ) being only 4% below its record high, software stocks are the focal point of the current market selloff. The rapid advancement of artificial general intelligence (AGI) is cited as the primary cause for this sector's vulnerability. Bitcoin, being an internet stock, is now trading in tandem with these software stocks rather than the broader market index. ByteTree predicts that the current downturn could last about 14 months, with economic conditions potentially providing support for Bitcoin's resilience.