Rapid developments in artificial intelligence technology have recently led to remarkable losses in the shares of software companies. This decline in the markets also has an impact on the course of some digital assets, especially Bitcoin.
Sharp Declines in the Software Industry
iShares Expanded Tech-Software Sector ETF (IGV), which invests in software companies, lost 15 percent in February, its worst monthly performance since the 2008 crisis. The index is about 35 percent below its peak as it retests its April 2025 lows.
Artificial intelligence applications are shown as the most important factor in losses in the sector. In particular, sales pressure has accelerated with the expectation that emerging artificial intelligence tools will pose a serious threat to existing software companies.
It was stated that software stocks saw their worst monthly performance since 2008, and even companies that were expected to be least affected by artificial intelligence remained under pressure.
Anthropic Development and Market Reactions
On February 20, artificial intelligence-based startup Anthropic introduced a new software security tool called Claude Code Security. This tool scans codebases for vulnerabilities, makes recommendations for human review, and aims to detect issues that traditional security solutions may miss.
Following Anthropic’s announcement, the shares of some major companies in the cyber security field experienced serious losses in value. While CrowdStrike lost $20 billion in value in two trading days, IBM shares also dropped by nearly 10 percent. Similarly, companies such as Palo Alto Networks and Cloudflare also saw double-digit decreases.
It was reported that software sales continued and additional declines were observed in cyber security companies, and Anthropic’s new security solution triggered the fear of radical changes in the industry.
AI Scenarios and Expanding Market Concerns
A report published by Citrini Research on Monday predicted that artificial intelligence could increase corporate profits by negatively impacting white-collar employment in the medium term. In the same report, weakening consumer demand and structural economic problems were also highlighted.
The report emphasized that the scenario created was not a prediction, but was prepared to model a possibility that had not been adequately examined before.
Following these developments, share values of delivery, payment and software companies declined again. Uncertainties arising from artificial intelligence continue to shake investor confidence throughout the sector.
Close Relationship Between Bitcoin and Software Stocks
There is a similar tension in the cryptocurrency markets. According to Grayscale, Bitcoin’s price movement has recently shown a very close correlation with US software stocks. It is noteworthy that Bitcoin sometimes acts as a high-volatility asset along with technology stocks.
In the long term, continued weakness in technology stocks may put pressure on risky assets, especially Bitcoin. Especially the decline in growth-oriented stocks can tighten financial conditions and negatively affect all high beta assets, including cryptocurrencies.
However, it is also possible that the correlation will weaken if investors begin to view Bitcoin as a hedge against AI-driven structural changes, currency depreciation, or aggressive monetary policy practices.
