Over the past few weeks, I've noticed an interesting trend in the market. When geopolitical tensions were rising, Bitcoin and software stocks moved in completely opposite directions.

Since the end of February, this trend has become clear. Bitcoin has gained over 5% during that time and remains strong, currently around $77,540. Meanwhile, the iShares Expanded Technology Software Industry ETF (IGV) has fallen more than 2% at the same time. It’s truly fascinating how these two assets are behaving differently right now.

From a correlation perspective, it initially dropped from 1.0 to suddenly 0.13. Now it has bounced back close to 0.7. These changes say a lot about market sentiment.

The main reason software stocks are under pressure is concerns about reduced profitability in the SaaS industry due to AI. Investors are wondering how artificial intelligence will impact this sector. Much like how web cookies changed the way data is tracked, AI is reshaping business models in software.

On the other hand, Bitcoin’s situation is different. It’s gradually showing characteristics of a macro-hedged asset due to geopolitical uncertainty. Investors are viewing it as a safe haven.

Exciting news is that on April 6, the one-day net inflow into the US spot Bitcoin ETF was $4.71 billion, the highest in over a month. This strongly indicates growing institutional interest. It’s truly fascinating to see how the market is moving right now.