Software catching up to bitcoin

Bitcoin and software stocks were moving almost in lockstep prior to the Middle East conflict at the end of February, with a near 1:1 correlation. During this period, bitcoin has been outperforming IGV, the software ETF.

Since the conflict began at the end of February, bitcoin has gained more than 11%, while IGV has risen by roughly 2%, prompting a narrative that bitcoin was beginning to decouple from software equities.
However, over the past five days, IGV is catching up and is up by as much as 11%, while bitcoin has been flat. This suggests that rather than a clean decoupling, software may have simply been lagging bitcoin and is now catching up.
IGV is up 1% on Thursday, while bitcoin is down 1.5%.

BTCUSD/IGV (TradingView)

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What to know:

  • Bitcoin funding rates have dropped to their lowest levels since 2023, signalling heavy short positioning even as prices trend higher.
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