Bitcoin Gains Ground Against ‘Magnificent 7’ Stocks as Wall Street Shudders

Although Bitcoin’s price is nearing a five-month low, the tariffs imposed by U.S. President Donald Trump have significantly impacted the nation’s largest tech companies.

Since November 5, the leading cryptocurrency by market capitalization has gained strength against the “Magnificent Seven,” which includes major Nasdaq companies like Apple, Nvidia, and Tesla.

As of Monday, one Bitcoin was valued at approximately 1,993 shares of the Roundhill Magnificent Seven ETF (MAGS), which offers equal-weight exposure to this group of tech entities. A year earlier, one Bitcoin could purchase 1,756 shares of the ETF when it was trading at $69,000.

Last Friday, Matthew Sigel, who leads digital assets research at VanEck, indicated that the ratio reached an unprecedented high on X, previously known as Twitter.

“I’ve been advising clients for years to utilize Bitcoin as a hedge against FAANG exposure,” he added, referring to the well-known acronym for major tech companies including Meta (previously Facebook), Amazon, Apple, Netflix, and Google.

On Monday, Bitcoin’s relative strength compared to the Magnificent Seven stocks was at its peak over the past year, having risen 13.5% during that timeframe. While Bitcoin has lately been trading like a tech stock, some investors see it as a sign of separation.

“Historically, Bitcoin has had a mixed performance in offering short-term protection during times of market distress,” noted Bitwise’s Senior Investment Strategist Juan Leon in a statement to Decrypt. “Could this be the moment it begins to succeed as a robust short and long-term store of value?”

As the trade war initiated by the president progresses, U.S. stocks are experiencing their worst period since the COVID-19 pandemic began. On Monday, the S&P 500 experienced its third consecutive decline, dropping 10% in the past week, according to Yahoo Finance.

On Monday, Bitcoin’s price dipped to $74,600, marking a new low during Trump’s second term according to data analytics from CoinGecko. While the S&P 500 has retraced its post-election gains, Bitcoin continues to trade above its price of $69,000 from Election Day on November 5.

“When compared to historical macroeconomic disruptions or cycles in the crypto market, these are not unprecedented declines,” stated Thomas Perfumo, a global economist at Kraken, in a remark to Decrypt. “This asset class has withstood tougher challenges and, historically, come out stronger each time.”

Edited by James Rubin