📉 Bitcoin Behaves More Like a Tech Stock Than Digital Gold
According to Standard Chartered, Bitcoin today acts less like digital gold and more like a tech stock. It’s strongly correlated with the Nasdaq, while its connection to gold has almost vanished.
The bank notes that Bitcoin’s correlation with the Nasdaq is currently around 0.5, and it even reached 0.8 earlier this year. In contrast, its relationship with gold dropped to zero at one point and now sits just above 0.2.
🧠 To Wall Street, Bitcoin Is Just Another “Tech Trade”
Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, describes Bitcoin as “another big tech trade.” In the short term, it mirrors Nasdaq’s movements, making its role in institutional portfolios increasingly relevant.
According to Kendrick, Wall Street treats crypto like a tool:
“If it’s useful, they pick it up. If not, they dump it.”
🧪 Mag 7B: Tesla Out, Bitcoin In
Standard Chartered has created a new version of the Magnificent 7 index, calling it Mag 7B. They removed Tesla and replaced it with Bitcoin, joining Apple, Amazon, Alphabet, Meta, Microsoft, and Nvidia.
Since December 2017, Mag 7B has outperformed the original Magnificent 7 in five of the past seven years, averaging about 1% more annually. The gains weren’t massive, but they were steady.
📊 Bitcoin’s Volatility: On Par with Nvidia
Since January 2025 — when Trump returned to office — Bitcoin dropped 16%, Nvidia fell 12%, and Tesla plunged 36%. Ethereum dropped 38% over the same period.
Kendrick sees this as an opportunity: “Bitcoin can serve both as a hedge against traditional finance and as part of a tech allocation. That dual function could attract more institutional investment.”
🌐 Trump Tariffs Turn Up the Heat on Bitcoin
Since Trump renewed his push for tariffs, Bitcoin has dropped 5% over the past year. Standard Chartered says that’s not surprising — Bitcoin reacts strongly to macroeconomic triggers.
Two key patterns the bank highlights:
Bitcoin tends to rise when the money supply (M2) increasesBitcoin tends to fall when the U.S. dollar index (DXY) strengthens
Both dynamics are currently in play.
🧭 Markets Waiting for Clearer Signals
Traders are hoping for a rebound in Q2, as tariff clarity could help Bitcoin bounce back. But the White House is keeping markets guessing. On March 24, U.S. stock futures were flat after a hopeful trading day.
S&P 500 rose 1.8%Nasdaq Composite jumped over 2%Dow Jones gained nearly 600 points
Tesla recorded its best day since November.
🧨 Morgan Stanley: This Rally Won’t Last
Mike Wilson from Morgan Stanley called the current upswing a “low-quality rally,” driven by short squeezes and technical factors like earnings revisions among some Mag 7 names.
He estimates that the rally could reach 5,900 points, but warns of a pullback soon after. A weak dollar and stable earnings forecasts may bring capital back to U.S. equities, but volatility will remain.
Wilson added, “Whatever rally we’re seeing now, we think it probably ends around earnings in May and June. Then we’ll likely hit a more durable bottom later in the year.”
He didn’t blame tariffs for the market’s weakness, but rather fundamental and technical factors:
“The reason markets have been soft over the past three or four months has nothing to do with tariffs,” Wilson said. “It’s mostly because earnings revisions have rolled over. The Fed stopped cutting. Immigration enforcement tightened. Government efficiency mandates kicked in. All of that is negative for growth.”
At the time of writing, Bitcoin was priced at $86,689.57
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