Bitcoin is increasingly moving in sync with the software and technology sector, reshaping its role in global finance. Instead of behaving like a traditional store of value or an independent asset class, BTC has shown price patterns closely tied to technology-driven markets, particularly growth-oriented software companies and digital innovation stocks. This growing connection reflects Bitcoin’s deep roots in technology and its dependence on the market conditions that typically influence high-growth sectors and innovation cycles.
### How Market Liquidity Connects Bitcoin to Software Stocks
According to crypto analyst Kevin, Bitcoin has been more closely tied to the software sector than any other market in recent years. The underperformance in software has been driven by significant disruption from Artificial Intelligence (AI) technology, and BTC has experienced similar underperformance due to AI-driven disruption throughout 2025 and the broader market cycle.
However, with Bitcoin no longer being the newest breakthrough technology and amid a prolonged period of tighter monetary policy, these factors combine to explain the overall underperformance in crypto. The key question now is whether BTC can overcome this hurdle in the future. Kevin believes it can, but for the first time, it must overcome fundamental narrative challenges.
The current daily chart structure for Bitcoin has been interpreted as a strong bullish setup. Market commentator Super฿ro on X has pointed out that it is often better for BTC to first flush out lower liquidity levels, leaving overhead liquidity intact. This remaining liquidity could later serve as fuel for a potential short squeeze. Thus, BTC had the opportunity to move higher and eliminate short positions but instead left them untouched.
Currently, BTC has flushed out almost all leveraged long positions below, which sets the stage but offers no guarantee. Technically, this pattern could also be viewed as a bear pennant breakdown, with a potential downside target below $50,000.
Super฿ro believes such a move would prove too ambitious for bears, as it would push the price into a major multi-year support zone. However, if BTC successfully holds its recent lows on a closing basis, the outlook could turn decisively bullish, opening the door to a sharp recovery toward the $70,000 range and potentially higher.
### BTC Flow from Spot to Futures Markets Explained
The Bitcoin Inter-Exchange Flow Pulse (IFP) is approaching a golden cross with its 90-day moving average (90MA). Crypto investor and data analyst CW noted that the IFP indicator tracks BTC flowing from the spot market into the futures market. If this trend accelerates further and forms a golden cross above the 90MA, it could signal the start of a bullish rally.
Frequently Asked Questions
Frequently Asked Questions About Bitcoins Behavior vs Software Stocks
BeginnerLevel Questions
Q1 What does it mean that Bitcoin is behaving like software stocks
A1 It means Bitcoins price movements are increasingly correlated with major tech or software company stocks When those stocks rise or fall Bitcoin often moves in a similar direction rather than acting as a completely independent asset
Q2 Why is Bitcoin compared to stocks and not just gold or cash
A2 Bitcoin was originally seen as digital golda store of value separate from traditional markets Now its often traded like a highgrowth tech stock because both are seen as innovative volatile assets influenced by similar factors like investor sentiment liquidity and macroeconomic trends
Q3 Is Bitcoin still a good hedge against inflation if it moves with stocks
A3 Its hedging ability has become more complicated While some still view it as a longterm inflation hedge its shortterm correlation with stocks means it can fall when traditional markets drop potentially reducing its effectiveness as a portfolio diversifier in crises
Q4 What are the main factors making Bitcoin act like software stocks
A4 Key factors include increased institutional investment influence of macroeconomic news adoption by techfocused companies and its perception as a digital innovation asset
Q5 Should I buy Bitcoin if I already own tech stocks
A5 Be cautiousif theyre highly correlated you might not be diversifying your portfolio as much as you think Its important to assess your overall risk exposure to tech and growth assets
Advanced Practical Questions
Q6 How is this correlation measured and how strong is it currently
A6 Analysts use statistical measures like correlation coefficients The strength fluctuates but has been notably high during periods of market stress or bullish tech rallies sometimes reaching correlations above 07
Q7 Does this mean Bitcoin has lost its safe haven status
A7 In the short term yesduring recent market downturns Bitcoin has often sold off alongside stocks However some argue its longterm decentralized nature and fixed