Crypto markets turned higher after what had initially looked like a weak trading session, as geopolitical headlines improved sentiment. Israeli Prime Minister Benjamin Netanyahu said he had instructed his cabinet to begin negotiations with Lebanon as soon as possible. Earlier, NBC News reported that President Trump had asked Netanyahu to scale back bombing in Lebanon because it risked undermining the ceasefire announced on Monday.
Bitcoin reacted quickly to the news, climbing roughly 3% and trading at $72,300, up about 2% over the past 24 hours. U.S. equities also reversed early losses, with the Nasdaq moving up 0.65%. In commodities, WTI crude oil, which had surged to nearly $103 a barrel earlier in the day, pulled back sharply to $98.60.
Bitcoin Outperforms Major Cryptocurrencies
Bitcoin’s move stood out against the broader crypto market. While BTC rallied strongly, ether (ETH), solana (SOL), and XRP were each up by less than 1%. That gap suggests capital was concentrated more heavily in bitcoin rather than spreading evenly across large-cap digital assets.
Divergence From Software Stocks Continues
Another notable trend is bitcoin’s growing separation from software equities, which had traded closely with it in recent months. The iShares Expanded Tech-Software ETF (IGV) fell 4%, approaching a key support area near $76, a level that has held multiple times before.
Over the past month, bitcoin has gained 9%, while IGV has declined 12%. On a 20-day moving average basis, the correlation coefficient between bitcoin and IGV has dropped to 0.34, underscoring the weakening relationship between the two. The latest price action points to bitcoin behaving more independently, even as macro and geopolitical factors continue to shape broader risk markets.