Bitcoin Freefall: $70,000 Support Shatters as Bears Take ‘Firm Control’
first published 2026-02-04T16:26:20Z
ByteTree reports Bitcoin’s 30-day rolling correlation with the iShares Expanded Tech Software ETF (IGV) is 0.73. IGV is down ~20% year-to-date while Bitcoin has fallen ~16%, and BTC’s moves are aligning more with weak software names (Microsoft, Oracle, Salesforce, Intuit, Adobe) than the broader Nasdaq 100. Analysts link the software sell-off to AI/AGI concerns; ByteTree notes the average technology bear market lasts about 14 months (implying pressure could extend into much of 2026). Van Eck’s Matthew Sigel summarized the view: “Bitcoin is just open-source software.”
AI Analysis
Correlation and performance data show Bitcoin is moving with a weak software sector (30‑day correlation 0.73 to IGV; IGV down ~20% YTD vs. BTC down ~16%). ByteTree’s note that average tech bear markets last ~14 months provides a concrete channel for continued downside pressure; market participants citing AI/AGI-driven software weakness links the driver to observable equity flows. These facts justify a modestly bearish sentiment and a moderate trading impact.
Expected Investor Sentiment: Bearish
Potential Market Impact: High
Source Articles
- Bitcoin's correlation with troubled software stock sector is growing - CoinDesk
- Bitcoin slips below $71,000 as AI-driven tech rout - CoinDesk
- Bitcoin slides below $70,000 on Bitstamp - CoinDesk
- Bhutan moves bitcoin to trading firms and exchanges as BTC drops to nearly $70,000 - CoinDesk
- Bitcoin Freefall: $70,000 Support Shatters as Bears Take ‘Firm Control’ - Bitcoin.com
- Analyst Benjamin Cowen Expects Bitcoin Bounce After BTC Drops to $73,000 – But There’s a Catch - Daily Hodl
- Tim Draper Reveals Crucial Bullish Nuance About Bitcoin: Details - U.Today
- Bitcoin sell off: BTC price falls near $70,000 amid market uncertainty - Crypto News
- Grant Cardone Buys More Bitcoin at $72K - Coinpedia
