A very interesting chart compares Bitcoin and the S&P North American Expanded Technology Software Index. It highlights strong directional alignment. Major peaks and drawdowns occur in sync. Bitcoin shows higher volatility, yet it trades alongside high-growth software through liquidity cycles. Maybe TradFi investor more likely to classify BTC within the “innovation” or “tech-adjacent” bucket. In risk models, Bitcoin clusters with long-duration growth assets. When SaaS companies crashed due to AI disruption, BTC can be reduced as part of the same exposure sleeve. At the same time, capital is rotating toward physical bottlenecks. Names like Energy (XLE) and copper miners (COPX) are strengthening significantly. Bitcoin is a digital protocol, yet it is secured by physical inputs: – Electricity – ASIC hardware – Data center infrastructure – Semiconductor fabrication Mining converts energy into cryptographic security. Hashrate expansion requires real-world capex. In that sense, Bitcoin is closely tied to energy markets and compute supply chains. Bitcoin sits between two identities: - A high-beta innovation asset trading with software - A digitally scarce asset secured by energy and computation Recent market action suggest that the financial-asset framing still drives correlation. Meanwhile, the outperformance of energy and materials reflects renewed market focus on scarcity and physical constraints. The question going forward: does Bitcoin continue to trade as innovation beta, or does it increasingly get priced as energy-backed digital scarcity?(BloFin Research)