Bitcoin Pulls Back Toward $71,000 as Software Stocks Rally

The 11 U.S.-listed spot Bitcoin ETFs have become an important gateway for institutional capital entering the crypto market, and their flows are also viewed as an indicator of price support. ETF redemptions, aggressive selling in spot and futures markets, and demand for options hedges are now rising in tandem, suggesting the correction may be more than a pullback after a rally.

Bitcoin fell about 6% from $82,000 to $76,800 and dropped below $77,000 again on May 22. SoSoValue data showed that the 11 ETFs had recorded more than $1.5 billion in outflows since May 7, including $648 million on May 18 alone. Glassnode said spot cumulative volume delta, or CVD, had fallen to negative $126.2 million, with key support at $74,000–$76,000.

Bitcoin is highly sensitive to interest rates and dollar liquidity. When US Treasury yields rise, non-yielding assets become relatively less attractive to hold. The latest decline coincided with losses in stocks and gold, reflecting traders’ reassessment of the Federal Reserve’s rate-hike path amid inflation concerns. The move was therefore not confined to the crypto market.

Around May 15, Bitcoin fell about 3% in a single day, breaking below $79,000 and touching $78,000 before sliding below $77,000 to a low of about $76,000. Liquidations of bullish crypto positions reached $500 million, while SOL and XRP each dropped about 5%. US Treasury yields neared 20-year highs, although Bitcoin’s implied volatility remained low.

Bitcoin is highly sensitive to interest rates and market liquidity. The U.S. Federal Reserve delivered its most hawkish signal in years through the Federal Open Market Committee, while the U.S.-Iran conflict increased energy and inflation risks. Investors responded by retreating from risk assets including cryptocurrencies, as oil prices climbed to their highest level since 2022.

Market analysis on May 18 showed Bitcoin falling below $76,000 and approaching $75,000, with some traders predicting a possible decline to $65,000. Recent buyers sold $770 million worth of BTC at a loss, reflecting how high oil prices, hawkish monetary policy and geopolitical tensions continue to suppress demand.

As Bitcoin approached $80,000, escalating geopolitical tensions between the United States and Iran, rising oil prices and inflation concerns prompted investors to reassess risk assets. Persistently negative funding rates reflected bearish sentiment in derivatives markets and added selling pressure on major cryptocurrencies including ETH, SOL and DOGE.

As of July 19, Bitcoin had climbed as high as $79,388 before retreating to $79,000 and trading around $78,000. It had previously fallen to $76,600. Reports showed that funding rates had remained negative for two consecutive weeks, while ETH, SOL and DOGE also declined as investors took profits.

Bitcoin has been correcting for about five months since retreating from its record high of $126,000 in October 2025. Although the market regards it as a scarce asset, its 50-day correlation with the Nasdaq 100 remains at 84%. Cointelegraph said that if spot ETF flows are merely following Bitcoin's price, the rebound is not enough to prove the bear market has ended.

Bitcoin briefly climbed above $73,000 and approached $74,000 by March 14, 2026. The U.S. Commerce Department said on March 13 that the economy grew just 0.7% in the fourth quarter of 2025. CoinGlass data showed spot ETFs recorded $583 million in net inflows over four consecutive days, while a separate analyst estimate put the amount accumulated by Strategy through its STRC instrument at more than $900 million.

Bitcoin has recently tested the $73,000 threshold several times, making it a key resistance level for gauging the balance between bullish and bearish forces. Geopolitical risks have not fully subsided following the Middle East ceasefire, keeping investors cautious toward risk assets and curbing upside momentum in major tokens including Ethereum and Solana.

On the Friday cited in the report, Bitcoin fell back to $71,843 after failing for a third time to break $73,000 since the ceasefire. Ethereum's ETH, Solana's SOL and Dogecoin's DOGE traded within ranges or edged lower. The report did not provide the exact date or the percentage declines for the individual tokens.

Bitcoin has historically moved in tandem with high-growth technology stocks, but their trajectories began to diverge after the Iran war erupted on February 28 and generative AI altered profit expectations for the software industry. The market uses the iShares Expanded Tech-Software Sector ETF (IGV) as a gauge of software-stock performance. The decoupling suggests investors are reassessing Bitcoin’s role as an asset.

The latest data showed that Bitcoin’s correlation coefficient with IGV had plunged from nearly 1.0 to 0.13. While software stocks recently fell more than 2%, Bitcoin gained over 5% and reclaimed $69,000, indicating that investors no longer view it solely as a more volatile proxy for technology stocks as geopolitical risks rise.

Bitcoin is highly sensitive to interest-rate and inflation expectations. February’s consumer price index from the U.S. Bureau of Labor Statistics matched market forecasts and did not support a near-term Federal Reserve rate cut. Still, falling oil prices helped ease inflationary pressure and supported risk assets including cryptocurrencies.

Bitcoin quickly reversed its overnight losses after the February CPI release, first breaking above $70,100 and then climbing past $71,000. Markets also digested news of a 400 million-barrel oil release. Ether, Solana and Cardano (ADA) rose in tandem, showing little drag from weakness in U.S. stocks.

Bitcoin and U.S. technology stocks have become increasingly correlated in recent years, with both driven by risk appetite, interest-rate expectations and capital flows. Wall Street's concerns over AI software valuations and growth prospects also triggered selling in crypto assets and mining companies. The $64,000 level is therefore not only a price threshold but also a key gauge of whether capital is returning to high-risk assets.

Bitcoin rebounded from its lows on Tuesday, though the reports did not specify the date, retaking $64,000 and lifting cryptocurrency mining stocks. The latest gains coincided with a narrowing of losses in AI-related software shares, suggesting market anxiety had temporarily eased. The reports did not identify individual miners or financial institutions or provide stock-specific gains; the confirmed key figure is Bitcoin's $64,000 price level.

Bitcoin has long been viewed by some investors as inflation-resistant “digital gold,” but its recent performance has more closely resembled that of a volatile risk asset. Its price has moved closely in line with software-stock benchmarks such as the iShares Expanded Tech-Software Sector ETF (IGV), suggesting that selling pressure in U.S. technology shares and private equity markets is spilling into cryptocurrencies.

During U.S. trading on Monday, July 13, Bitcoin briefly rebounded above $65,000, but the rally failed to hold. It retreated to about $65,400 as the broader stock market and software shares declined. Polymarket showed the probability of Bitcoin falling below $55,000 had risen to 72%, reflecting weakening confidence among holders and increased downside risk.