Bitcoin (BTC) can evolve into more than just a cover against financial instability – it can now be considered a bona fide technical shares, according to a new analysis by Standard Chartered Head or Digital Assets Research Geoffrey Kendrick.
Share in a research report with CryptoSlate On March 24, Kendrick proposed to re -configure the famous “Magnificent 7” Tech Stock Index with Bitcoin. He argued that this would improve the returns of the index.
Tech Proxy in the short term, long -term hedge
To test that thesis, the Kendrick team created a revised index by removing Tesla – the smallest member of the original group – and replacing Bitcoin. When measured by return-to-volatility, the MAG 7B index consistently surpassed the original from 2020 to 2024.
According to the report:
“We see that our index, ‘MAG 7B’, has both a higher return and a lower volatility, then 7this can suggest that investors can regard BTC as a cover against Tradfi and as part of their technical allocation.”
Kendrick argued that as Bitcoin continues to play a role in worldwide portfolios, the case to treat it as a regular risk activity will only strengthen. The report stated that institutional flows in Bitcoin are getting more deep, especially after the approval of spot Bitcoin ETFs in the US.
According to the report:
“As the role of BTC in the global investment portfolios is determined, we think that having more than one use will bring new capital instromas to the active. This applies in particular as Bitcoin investments are more institutionalized.”
While Kendrick continues to consider Bitcoin as a hedge in the medium term against traditional finances (Tradfi) risks on the collapse of March 2023 as a relevant example of Silicon Valley-browned, he has been strongly correlated with the Nasdaq in shorter time horizons.
He wrote:
“In the medium term, I see Bitcoin as a hedge against TradeFi problems … but in shorter time horizons it acts very much like the Nasdaq.”
Boost of wider markets
The timing can be favorable. Kendrick expects markets this week to respond positively to a “less bad” American rate announcement and noted that the first quarter of 2025 of the Nasdaq is the worst since the second quarter of 2022.
A potential rebound can benefit disproportionately Bitcoin, given the increasing coordination with fast -growing technical assets. Expected exemption from April tariff news and broader technical optimism can strengthen the question.
Kendrick said:
“I would expect that this week is a good thing for Bitcoin and all things crypto … Higher Nasdaq will now be a higher bitcoin. 90k in Focus now.”
However, the lender continues to believe that Bitcoin needs a larger catalyst for a more persistent meeting to new highlights.
The analysis of Kendrick indicates a growing recognition of the hybrid nature of Bitcoin-Zowel a hedge as a high-beta-technical active-that it positions it as a potential long-term setup in global investment strategies.
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