For years, Bitcoin and tech stocks moved in lockstep, a tandem trade that became so reliable it was practically a meme. That relationship is fracturing, and the reason isn’t some crypto-specific crisis. It’s simpler than that: momentum traders found something shinier.
Bitcoin’s 30-day rolling correlation with the iShares Semiconductor ETF (SOXX) has dropped to 0.27, down from 0.55 at the start of the year. Its correlation with the iShares Expanded Tech-Software Sector ETF (IGV) fell to 0.27 from 0.38 over the same period.
The momentum trade has moved on
Bitcoin dipped to $65,385 in early June 2026, its lowest level since February. It has since clawed back slightly above $67,000, but the damage to sentiment is real.
Jay Hatfield has pointed out that momentum players are gravitating toward sectors with stronger immediate trends. Chip stocks, buoyed by relentless AI infrastructure spending, offer something Bitcoin currently doesn’t: a clear earnings narrative.
