4 days ago
Bitcoin (BTC) whitethorn beryllium evolving into much than conscionable a hedge against fiscal instability — it could present beryllium considered a bona fide tech stock, according to a caller investigation by Standard Chartered caput of integer assets probe Geoffrey Kendrick.
In a probe study shared with CryptoSlate connected March 24, Kendrick projected reconfiguring the famed “Magnificent 7” tech banal scale to see Bitcoin. He argued that this would heighten the index’s returns.
Short-term Tech Proxy, Long-term Hedge
To trial that thesis, Kendrick’s squad created a revised scale by removing Tesla — the smallest subordinate of the archetypal radical — and replacing it with Bitcoin. When measured by return-to-volatility, the Mag 7B scale consistently outperformed the archetypal from 2020 done 2024.
According to the report:
“We find that our index, ‘Mag 7B’, has some higher returns and little volatility than Mag 7This suggests that investors tin presumption BTC arsenic some a hedge against TradFi and arsenic portion of their tech allocation.”
Kendrick argued that arsenic Bitcoin continues to summation a relation successful planetary portfolios, the lawsuit for treating it arsenic a mainstream hazard plus volition lone strengthen. The study stated that organization flows into Bitcoin are becoming more entrenched, peculiarly pursuing the support of spot Bitcoin ETFs successful the US.
According to the report:
“As BTC’s relation successful planetary capitalist portfolios becomes established, we deliberation that having much than 1 usage volition bring caller superior inflows to the asset. This is peculiarly existent arsenic Bitcoin concern becomes much institutionalised.”
While Kendrick continues to presumption Bitcoin arsenic a medium-term hedge against accepted concern (TradFi) risks — pointing to the March 2023 illness of Silicon Valley Bank arsenic a applicable illustration — helium emphasized that, implicit shorter clip horizons, Bitcoin is highly correlated with the Nasdaq.
He wrote:
“Over the medium-term I spot Bitcoin arsenic a hedge against TradFi issues… But implicit shorter clip horizons it trades precise overmuch similar the Nasdaq.”
Boost from broader markets
The timing whitethorn beryllium favorable. Kendrick expects markets to respond positively this week to a “less bad” US tariff announcement and noted that the Nasdaq’s archetypal 4th of 2025 has been its worst since the 2nd 4th of 2022.
A imaginable rebound could payment Bitcoin disproportionately, fixed its expanding alignment with high-growth tech assets. Anticipated relief from April tariff news and broader tech optimism could amplify demand.
Kendrick said:
“I would expect this week to beryllium a bully 1 for Bitcoin and each things crypto… Higher Nasdaq volition adjacent higher Bitcoin. 90k successful absorption now.”
However, the lender continues to judge that Bitcoin needs a bigger catalyst for a much sustained rally to caller highs.
Kendrick’s investigation signals a increasing designation of Bitcoin’s hybrid quality — some a hedge and a high-beta tech plus — positioning it arsenic a imaginable semipermanent fixture successful planetary concern strategies.
The station StanChart says Bitcoin strengthening its dual relation arsenic TradFi hedge and tech stock appeared archetypal connected CryptoSlate.
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