Bitcoins are often compared with gold, and marketed as a way to hedge financial risks.
Standard Chartered’s Geoffrey Kendrick argues, however, that the largest cryptocurrency in the world behaves like a tech giant than a yellow metal.
Kendrick, in a note sent to clients recently, said that Bitcoin trading was highly correlated with the Nasdaq on short-term time frames. This challenged the widespread perception of BTC being a ‘digital currency’.
Trump’s tariffs have fueled an increase in economic volatility, and his report is a response to this.
Bitcoin is struggling to maintain its price above $100,000, the level that has been closely monitored.
Bitcoin and Nasdaq’s relationship is good
Bitcoin’s correlation to the index was at a record high this year, reaching a value of 0.8. The number is still around 0.5, even though it has dropped a bit since then.
Comparatively, its correlation to gold is only 0.2, having reached zero just last month. This means it moves more like large-cap stocks and less like metal kings.
Kendricks argued in his research report that this is not necessarily bad. “Having assets with more than one purpose will attract fresh capital to them.”
BTC’s price has risen by more than 10 percent in the last two weeks after falling to below $80,000.
BTC is trading like Nvidia recently
The investment firm, in its most recent research note proposed the concept of “Mag 7B”, a combination of Bitcoin with the Magnificent 7 technology stocks.
The hypothetical Mag 7B performed better since December 2017 than the Magnificent 7 Kendricks noted that “Mag 7B’s relative returns on both a calendar year and absolute basis are decent.”
He added that, like Nvidia’s cryptocurrency, the largest by market capital in the world has traded with volatility adjusted since President Donald Trump was inaugurated.
Nvidia has fallen 12% in the last month since 20 January , while Bitcoin is down 16%.
What is the maximum Bitcoin price in 2025?
Standard Chartered, a London-based bank giant, continues to advise BTC investors on weakness despite recent price pullbacks and the continued insecurity coming from the White House.
Geoffrey Kendrick believes the price of the asset will reach $200,000 before the year’s end, and then soar to $0.5 million by the time Trump leaves office.
The $1.5 billion Bybit Hack in February may have contributed to BTC’s ongoing decline. The analyst at the company is confident that as the industry becomes “institutionalized,” it will become significantly safer.
He concluded that the Trump Administration’s pro-crypto policy and clarity in regulatory matters will also continue to spur global interest and drive up the price of Bitcoin.
The post Bitcoin: Just another tech giant? This post may change as the updates unfold
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