Bitcoin gives up $65,000 as tech stocks weaken…moving in sync with software shares

Bitcoin fell overnight in tandem with weakness in tech stocks, sliding to around the $65,000 level. It has surrendered most of the gains it showed after recently reclaiming $70,000, reverting to near last week’s lows.

According to Binance’s Tether (USDT) market on the 12th, Bitcoin is trading around $66,000, down about 2% from the previous day. Major altcoins such as Ethereum and Solana also tracked Bitcoin’s move and weakened in tandem.

Analysts say the decline has moved in lockstep with softness in U.S. tech stocks—particularly the software sector. The tech-heavy Nasdaq fell 2% last Wednesday, while the iShares Expanded Tech-Software Sector ETF (IGV), which tracks software companies, plunged 3%. IGV has struggled this year, down 21% year to date. With advances in artificial intelligence (AI) dramatically improving coding capabilities, skepticism has grown over the lofty valuations of legacy software companies.

Market experts are focusing on the strong correlation between crypto assets and software stocks. Jim Bianco, president of Bianco Research, said, “Software stocks are struggling again and have returned to last week’s panic low levels,” adding, “We shouldn’t forget that crypto assets are another form of software—‘programmable money.’ Fundamentally, the two asset classes are moving in the same direction.”