bitcoin It quickly pulled back in US morning trading on Thursday, falling 2% in a matter of minutes after once again failing to overcome what is becoming strong resistance.
The largest cryptocurrency fell to around $73,500 during the US morning session, now down more than 1% in the last 24 hours. The move came after the cryptocurrency pulled back again after surpassing $75,000.
At the same time, the impressive stock market rally, which yesterday took the Nasdaq and the S&P 500 to record levels, paused. Just over an hour after the start of the session, both indices fell by around 0.1%.
Cryptocurrency-linked stocks also retreated across the board. Coinbase (COIN), Strategy (MSTR), Robinhood (HOOD), and Circle (CRCL) fell approximately 2% to 3% in morning trading.
Meanwhile, crude oil prices rose around 2%, reclaiming the $90 level, as ongoing geopolitical tensions continued to underpin supply concerns.
The $75,000-$76,000 range is key for bitcoin, as that was the level it was trading at before the February 5 market crash that took BTC to $60,000. A rise beyond that level could suggest a bigger move that could see prices return to around the $90,000 mark where Bitcoin started the year.
Software is catching up with bitcoin
Bitcoin and software stocks were moving at almost the same pace before the Middle East conflict in late February, with a correlation close to 1:1. During this period, bitcoin has outperformed IGV, the software ETF.
Since the conflict began in late February, bitcoin has gained more than 11%, while IGV has risen about 2%, creating a narrative that bitcoin was beginning to decouple from software stocks.
However, in the last five days, IGV is playing catch-up and is up as much as 11%, while bitcoin has remained stable. This suggests that rather than a clear decoupling, the software may have simply fallen behind Bitcoin and is now playing catch-up.
IGV rose 1% on Thursday, while bitcoin fell 1.5%.
