It has become clear that Bitcoin is being pulled down by selling pressure in the tech sector. According to data from ByteTree Research, the correlation coefficient between Bitcoin and the iShares Expanded Tech Software ETF (IGV) has risen to 0.73. In other words, Bitcoin is moving at nearly the same pace as software stocks.

Why is this happening? The reason is simple: concerns related to AI are directly impacting tech companies. Major software firms like Microsoft, Oracle, and Salesforce are being heavily sold off, and Bitcoin is declining along with them. While the Nasdaq 100 is only down about 4%, software stocks are experiencing more severe selling pressure. Essentially, since Bitcoin is fundamentally just open-source software, it cannot escape these tech-related sell-offs.

Interestingly, the average duration of tech-related bear markets is about 14 months. If the current decline that started in October continues, the pressure could persist until most of 2026. However, if the economic environment remains strong, it could provide some support.

Additionally, the turmoil surrounding World Liberty Financial is also noteworthy. Justin Sun severed ties with the project and pointed out that the team has been unfairly treating users. WLFI has deposited large positions into Dolomite, causing liquidity pools to become strained. Currently, WLFI tokens are trading at around $0.08. These issues with individual projects may also be influencing overall market sentiment.