Bitcoin Correlates Strongly With Nasdaq Index
Standard Chartered’s Geoffrey Kendrick, Head of Digital Asset Research, revealed a notable correlation between Bitcoin and the Nasdaq Composite. According to recent findings, Bitcoin mirrors the movement of high-growth technology stocks, particularly during times of economic uncertainty.
This strong linkage suggests Bitcoin could serve as a tech stock proxy. Especially in portfolios that already include companies like Apple or Tesla, Bitcoin provides an additional avenue for potential returns.
Replacing Tesla With Bitcoin in Growth Portfolios
Kendrick crafted a new index called “Mag 7B,” which replaces Tesla with Bitcoin in the popular “Magnificent Seven” portfolio. These seven tech giants usually include Apple, Amazon, Meta, Microsoft, Alphabet, Nvidia, and Tesla.
Kendrick’s analysis shows that replacing Tesla with Bitcoin leads to better risk-adjusted returns. His hypothetical Mag 7B index shows higher performance and reduced volatility. This reflects Bitcoin’s growing role in mainstream portfolio strategies.
Bitcoin’s Role in Evolving Investment Strategies
Kendrick believes that Bitcoin is maturing far beyond its original image as a niche digital asset. Instead, it’s becoming a serious investment vehicle, offering exposure to innovation like artificial intelligence and next-generation tech.
The comparison with Tesla is strategic. Both assets appeal to investors who seek disruption and exponential growth. But now, Bitcoin is proving it may deliver more balanced performance under volatile market conditions.
Market Indicators Signal Short-Term Caution
Despite these promising trends, some analysts advise caution in the near term. Crypto analyst Ali Martinez noted the TD Sequential indicator is flashing a short-term top for Bitcoin. This could prompt some investors to take profits, causing a temporary dip in price.
Martinez was also among the first to identify the recent Bitcoin market bottom. His latest analysis, released on March 24, signals that the current uptrend may pause. Investors should prepare for potential turbulence in the coming days.
From FANG to Magnificent Seven to Mag 7B
Investment narratives have evolved over the past decade. In 2013, Jim Cramer popularized the “FANG” acronym — Facebook, Amazon, Netflix, Google — to capture the growth stock trend. In 2023, Bank of America analyst Michael Hartnett coined “The Magnificent Seven,” which highlighted the top beneficiaries of trends like AI and cloud computing.
Now, Kendrick’s Mag 7B takes it a step further. By including Bitcoin, it reflects a belief that digital assets belong in the same category as top-performing tech companies.
Bitcoin’s Future as a Core Portfolio Asset
Standard Chartered’s endorsement of Bitcoin as a core portfolio asset marks a shift in institutional thinking. It’s no longer just a speculative play. Instead, it’s being viewed alongside the world’s most influential technology stocks.
As digital assets gain credibility, Bitcoin could become a long-term fixture in growth portfolios. Investors may eventually treat it like a macroeconomic hedge and a growth stock hybrid.
Bitcoin Gains Credibility Among Institutions
Bitcoin’s correlation with Nasdaq stocks and its potential to outperform tech giants like Tesla is drawing attention from large financial institutions. While short-term market signals suggest some caution, long-term fundamentals remain strong.
As investors diversify away from traditional tech stocks, Bitcoin continues gaining ground as a legitimate asset class. Geoffrey Kendrick’s research reinforces this view, positioning Bitcoin as a critical part of modern portfolio construction.