Bitcoin pulls back to near $71,000 even as software sector soars

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bitcoin pulls back to near $71,000 even as software sector soars The two battered markets have had a nearly one-to-one correlation in recent months, but are moving in opposite directions on Thursday. By Helene Braun , Krisztian Sandor | Edited by Stephen Alpher Mar 5, 2026, 3:57 p.m. Make us preferred on Google Bitcoin rally fades (geralt/Pixabay) What to know : Bitcoin's rally is taking a breather in U.S. trading on Thursday morning, with the price barely holding above $71,000 after challenging $74,000 a few hours ago. Crypto is declining even as the iShares Expanded Tech-Software Sector ETF (IGV) has risen more than 2%. Tomorrow brings the key U.S. jobs report for February as traders rapidly cut bets on any more Fed rate cuts in the first half of 2026. Bitcoin’s BTC $ 72,578.05 early-week rally began to fade after U.S. markets opened Thursday, sending the cryptocurrency by nearly 2% over the past 24 hours to $71,400. The move comes alongside declines in broad equity markets as the Iran war shows little sign of moving to a quick conclusion, sending oil higher by 5.3% to $78.70 per barrel. The Dow Jones Industrial Average is down 1.4% and S&P 500 by 0.7%. The Nasdaq, though, is down just 0.4% as the previously battered software sector catches a major bid. The iShares Expanded Tech-Software Sector ETF (IGV) is ahead 2% and now up by about 9% over the past five sessions. That divergence is notable, as bitcoin has been closely linked to the software sector, both tumbling in concert since October amid investor concerns over AI disruption and each bouncing from their lows in tandem in recent days. IGV ETF vs. BTC (TradingView) New bull or bear market bounce? Bitcoin "isn't in the clear yet," said Arthur Hayes , CIO of Maelstrom, noting that despite the rally to $74,000, the correlation with the IGV ETF remained. Whether Thursday's decoupling will last remains to be seen, but software names pushing higher while bitcoin retreating is not what crypto bulls wanted to see. "It could be a dead cat bounce," Hayes continued. Traders today might also be taking some chips off the table ahead of Friday's key U.S. jobs report for February. The economic data of late has mostly surprised to the upside, pushing down odds for a restart of Federal Reserve rate cuts. Interest rate traders at the Chicago Mercantile Exchange now see an 88% chance that the Fed will keep rates steady not only at this month's meeting but in April as well. A month ago, those odds were at 59%. "We're cautiously constructive, but the geopolitical tail risk demands humility," said Bryan Tan, trader at Wintermute. He said improving flows into spot bitcoin exchange-traded funds (ETFs), which have recorded nearly $2 billion in inflows in the past week alone, alongside stabilizing trading volumes, are supporting the market, while muted reaction to disruptions around the Strait of Hormuz could leave room for bitcoin to climb toward the $74,000-$75,000 range. Bitfinex analysts said there's been a "notable increase in spot market strength," indicating the recent move higher was driven by market buyers rather than speculative leverage. "We consider there to be a possibility of relief over the coming weeks and months should this trend follow through," they added. Bitcoin News Market Wrap Wintermute Bitfinex More For You Pudgy Penguins: Challenging the Pokemon and Disney Legacy in the Global IP Race By CoinDesk Research Feb 27, 2026 Commissioned by Pudgy Penguins CoinDesk Research looks into how Pudgy Penguins disrupts traditional toys market via a phygital model. With 2M+ units sold, they scale via global partnerships and events. What to know : Disrupting a Stagnant Market : Pudgy Penguins is utilizing a "Negative CAC" model to challenge the traditional $31.7B licensed toy industry by treating physical merchandise as a profitable user acquisition tool rather than just a final product. View Full Report More For You Core Scientific secures up to $1 billion loan facility from Morgan Stanley By James Van Straten | Edited by Stephen Alpher 2 hours ago The company initially closed a $500 million loan facility that includes an accordion feature allowing the total commitment to expand to $1 billion.. What to know : Core Scientific completed the initial closing of a $500 million, 364-day loan facility with Morgan Stanley. The facility includes an accordion feature that could increase total financing commitments to up to $1 billion. 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