Bitcoin Defies Tech Stocks Sell-Off, But Traders Remain Cautious

Bitcoin (BTC) has shown relative strength over the past week despite failing to break above $65,500. The cryptocurrency has decoupled from traditional markets as investors took profits in memory-chip makers amid fears of excessive valuations in the artificial intelligence sector.

The Bitcoin perpetual futures annualized funding rate stood at a neutral 8% mark on Monday, flat from one week prior. This suggests that top traders are not particularly confident about a rally toward $70,000.

Despite a lack of bullishness in BTC derivatives markets, the sell-off in AI-related stocks has caused investors to act more risk-averse. The sharp declines in the shares of IBM, SanDisk, Oracle, ARM, SpaceX, and Intel coincided with a rally in 5-year US Treasury yields.

The US 5-year Treasury yield surged to 4.33% on Monday, up from 4.22% two weeks prior. This indicates that traders are anticipating further expansionary monetary measures due to the ongoing fiscal debt issue.