IGV Diverges from BTC as Software Stocks Surge
For years, Bitcoin and software stocks have moved in tandem. However, this relationship has started to break down as the IGV ETF has climbed to a one-year high relative to BTC.
The ratio of IGV to BTC is currently at 0.0016, marking a significant divergence from their previous synchronized movement. This breakdown began in May and has continued to worsen, with IGV now down only 1% in 2026 while Bitcoin has fallen 29%.
IGV's rally of 40% from its April low has helped it regain some ground, but it remains 13% below its all-time high. Bitcoin, on the other hand, is around 50% below its all-time high.
Historically, similar negative-correlation episodes have occurred during significant market downturns for Bitcoin, including the 2018 bear market and China's bitcoin mining ban in summer 2021. While this may offer some encouragement to Bitcoin bulls, it remains to be seen whether the current divergence will persist or eventually reverse.