Bitcoin decoupling from tech stocks indicates new geopolitical use as economic hedge – StanChart

Bitcoin (BTC) outperformed astir large tech stocks connected April 3 and April 4 arsenic markets reeled from steep losses crossed the alleged “Magnificent Seven” (MAG7).

Standard Chartered caput of integer plus probe Geoffrey Kendrick said Bitcoin’s comparative resilience signals a increasing relation arsenic a dual-purpose plus — portion maturation trade, portion hedge against macro risks.

In an April 4 probe enactment shared with CryptoSlate, Kendrick highlighted that each 7 tech giants were successful the red, with Nvidia, Google, and Meta falling astir 8% oregon more.

In contrast, Bitcoin and Microsoft posted milder declines of astir 3%, with Ethereum (ETH) besides faring amended than astir of the MAG7.

Bitcoin and Microsoft were the strongest performers, each declining by astir 3%, portion Ethereum followed intimately behind.

“Strongest performers were MSFT and BTC. Same again truthful acold contiguous successful BTC spot and tech futures.”

Tech proxy and broader hedge

Kendrick argued that Bitcoin’s beardown show compared to bequest markets successful the existent marketplace indicates the divergence is not a one-off event.

Kendrick said Bitcoin “trades much similar tech stocks than it does golden astir of the time,” suggesting that BTC tends to emergence and autumn with risk-on assets. However, helium emphasized that its inferior goes beyond conscionable speculative upside.

During moments of structural accent successful accepted finance, specified arsenic the March 2023 illness of Silicon Valley Bank, Bitcoin has acted arsenic a hedge, providing investors with an alternate to banking assemblage exposure. Kendrick categorized this arsenic Bitcoin’s usefulness arsenic a “TradFi hedge.”

Kendrick believes a caller usage lawsuit is emerging: a hedge against “US isolation.” Though helium didn’t specify the term, it apt refers to expanding geopolitical decoupling, concerns implicit U.S. economical dominance, oregon rising de-dollarization narratives.

Kendrick further argued:

“Over the past 36 hours, I deliberation we tin besides adhd ‘US isolation’ hedge to the database of Bitcoin uses.”

Critical absorption successful sight

Looking ahead, Kendrick noted Bitcoin whitethorn beryllium approaching an important method breakout pursuing the positive US labour marketplace report connected April 4.

According to Kendrick:

“A interruption backmost supra the captious $85k level looks apt today, station payrolls. That opens up a determination backmost to the $88.5k pre-tariff level from Wednesday (likely this weekend).”

He concluded that Bitcoin is proving to beryllium “the champion of tech,” benefiting erstwhile maturation stocks rally portion besides offering antiaircraft characteristics crossed aggregate marketplace regimes. He concluded his investigation with a elemental connection for semipermanent believers successful Bitcoin:

“HODL.”

The station Bitcoin decoupling from tech stocks indicates caller geopolitical usage arsenic economical hedge – StanChart appeared archetypal connected CryptoSlate.