Bitcoin pulls back to near $71,000 even as software sector soars
Bitcoin retreated to around $71,400 on Thursday, diverging from a soaring software sector after months of close correlation.Summary
Bitcoin's early-week rally stalled on Thursday, with the cryptocurrency dropping nearly 2% to $71,400 following the opening of U.S. markets. This decline occurred while broad equity markets, particularly the software sector, showed strength, with the iShares Expanded Tech-Software Sector ETF (IGV) rising 2%. This divergence is significant because Bitcoin and the software sector have recently moved in tandem due to investor concerns over AI disruption. Analysts like Arthur Hayes noted that the correlation remains, suggesting Bitcoin might not be clear of trouble, and the current move could be a "dead cat bounce." Traders are also cautious ahead of Friday's key U.S. jobs report, which influences Federal Reserve rate cut expectations. Despite geopolitical risks, improving flows into spot Bitcoin ETFs and stabilizing volumes offer some support, with some analysts seeing potential for Bitcoin to climb toward $74,000-$75,000 if current strength in the spot market continues.
(Source：CoinDesk)