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Bitcoin (CRYPTO: BTC) may have transcended its role as merely a safeguard against traditional financial risks and is increasingly mimicking the behavior of a Nasdaq-listed technology stock, as per recent findings from Standard Chartered‘s Head of Digital Asset Research, Geoffrey Kendrick.
What Occurred: In a communication released to Benzinga on Monday, Kendrick pointed out that Bitcoin’s short-term trading habits closely align with those of the Nasdaq Composite, implying that BTC fulfills a dual function in contemporary portfolios.
While Bitcoin has historically been seen as a cushion against traditional financial instability—like the Silicon Valley Bank crisis in March 2023—the report indicates that, over shorter periods, the cryptocurrency moves in sync with U.S. tech stocks.
Don’t Overlook:
To demonstrate this, Standard Chartered devised a hypothetical index called “Mag 7B,” which replaces Tesla in the popular “Magnificent 7” tech-stock group with Bitcoin.
Kendrick asserts that this updated index yields both higher returns and reduced volatility compared to the original Magnificent 7.
“Our findings reveal that Mag 7B provides higher returns and lower volatility than Mag 7,” Kendrick noted, emphasizing that these results indicate Bitcoin can function as both a hedge against traditional finance and a replacement for tech stocks.
The “Magnificent 7” often includes top tech players such as Apple, Microsoft, Amazon, Meta, Alphabet, Nvidia, and Tesla (NASDAQ:TSLA).
By substituting Bitcoin for Tesla, Kendrick contends that the newly established “Mag 7B” index offers investors a more robust and potentially more lucrative portfolio.
See Also: Coinbase’s current promotion offers up to $200 in cryptocurrency (Seriously!) — Learn all you need to take advantage of this deal.
Why It’s Significant: As Bitcoin’s role in institutional portfolios expands, Kendrick believes its dual functionality—as a hedge and a growth asset—might drive further capital inflows. “In the long run, I think BTC can serve multiple roles in investor portfolios,” Kendrick remarked.
Kendrick also anticipates positive short-term momentum for Bitcoin, citing expectations of favorable U.S. tariff announcements and Nasdaq rebalancing.
“A stronger Nasdaq will mean a stronger Bitcoin. The focus is now on $90,000,” he added.
