Despite continuous positive developments such as ETF approvals and institutional adoption, since mid-last year, capital has been steadily flowing out of the crypto market, with Bitcoin’s price performance resembling that of high-growth U.S. software stocks rather than traditional safe-haven assets. Grayscale’s latest research indicates a significant increase in the correlation between Bitcoin and the U.S. software sector, suggesting its trading logic is more aligned with growth assets.
Data shows that from the beginning of 2024 to now, Bitcoin and U.S. software stocks have moved in highly synchronized patterns. During recent sell-offs, both nearly fluctuated in the same direction, indicating that this decline is more due to a broad de-risking of growth assets rather than issues specific to the crypto industry. Capital flows also support this view: U.S. investors led the recent sell-off, with related Bitcoin ETPs experiencing approximately $318 million in net outflows since early February, further suppressing prices.
Deeper reasons stem from private credit. The current non-bank loan market, valued at around $3 trillion, has a significant proportion of software companies. As artificial intelligence disrupts traditional software business models, investors worry about declining recurring revenue and rising default rates. UBS warns that U.S. private credit default rates could rise to 13%. When credit tightens, funds often sell high-volatility assets to recover liquidity, leading Bitcoin to be treated as a “high-beta tech asset.”
Joao Wedson, founder of Alphractal, points out that capital actually views Bitcoin and software companies as similar assets, both influenced by valuation cycles, growth expectations, and liquidity changes. Dan, head of research at Coinbureau, also believes that pressure from private credit has been evident since mid-2025, which is a key reason for Bitcoin’s decoupling from macro liquidity.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Morgan Stanley Bitcoin ETF Receives NYSE Listing Approval, Set for Official Launch Soon
BlockBeats News: On March 26, Bloomberg senior ETF analyst Eric Balchunas stated that Morgan Stanley's Bitcoin ETF (ticker: MSBT) has received official listing approval from the New York Stock Exchange (NYSE). The release of such announcements typically indicates that the relevant product is about to go live officially.
BlockBeatNews11m ago
Morgan Stanley Bitcoin ETF Receives Official NYSE Listing Announcement, Ticker Symbol $MSBT
Gate News reports that on March 26, Bloomberg's senior ETF analyst Eric Balchunas stated that Morgan Stanley's Bitcoin ETF (ticker: $MSBT) has received an official listing notice from the New York Stock Exchange (NYSE). Eric Balchunas pointed out that the release of such notices typically indicates that the relevant product is about to launch officially.
GateNews27m ago
Rising US Treasury yields, war in Iran, rising inflation risk pressure Bitcoin price
Key takeaways:
Investors dumped gold and bonds for cash as war-driven oil spikes and inflation forced a defensive market stance.
Rising yields and a 20% rate hike chance signal a tight outlook, leaving Bitcoin vulnerable amid soaring US debt.
Bitcoin (BTC) retested the $67,500
Cointelegraph1h ago
