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IT stocks fell amid AI risks and increased pressure on Bitcoin
Shares of software developers dropped sharply due to investor concerns about the impact of artificial intelligence on the industry. The correction in the technology segment heightened tension in financial markets and affected Bitcoin.
The sell-off in the IT sector coincided with increased volatility in the digital asset market. In recent months, Bitcoin has often shown similar dynamics to technology company stocks.
Why investors are reducing IT positions
According to Global Markets Investor, the iShares Expanded Tech-Software Sector ETF declined by 15% in February. This marks its worst monthly performance since 2008. The fund is testing April 2025 lows and is trading about 35% below its peak levels.
The main driver was a reassessment of risks related to AI adoption. Investors fear that new automation tools could reshape the business models of several companies.
On February 20, Anthropic introduced Claude Code Security. The solution is integrated into the Claude Code development environment and is designed to detect vulnerabilities in software code and provide remediation recommendations. The market interpreted the release as a potential threat to parts of the cybersecurity services industry.
According to The Kobeissi Letter, CrowdStrike lost $20 billion in market capitalization in just two trading sessions. Meanwhile, shares of IBM fell by more than 10%. The pressure spread to other companies in the sector.
An additional catalyst for the decline came from a report by Citrini Research. The document models a 2028 scenario in which AI-driven automation boosts corporate profits but simultaneously increases pressure on the labor market and consumer demand. The authors emphasize that this is a hypothetical scenario, yet the publication heightened investor caution.
How the tech correction affects Bitcoin
Grayscale noted that Bitcoin’s performance during the latest wave of selling almost mirrored the movement of U.S. software stocks. Market participants had previously pointed to a notable correlation between these segments.
As a result, Bitcoin in certain phases behaved not as a defensive asset but as a risk-sensitive instrument. If weakness in the IT sector persists, pressure on the cryptocurrency may continue.
A prolonged correction in growth stocks is usually accompanied by tighter financial conditions. The wealth effect diminishes, risk premiums rise, volatility increases, and positions in high-risk assets are reduced. Digital currencies often fall into this category.
At the same time, a divergence scenario remains possible. If investors begin to view Bitcoin as a hedge against structural changes driven by AI or potential government stimulus measures, the correlation with IT stocks could weaken. However, at the current stage, the market shows a strong link to the performance of the technology sector.
The post IT stocks fell amid AI risks and increased pressure on Bitcoin appeared first on BeInCrypto.
See also: "Trump raised the global tariff to 15% — the crypto market did not react"
