Standard Chartered Bank: Investors can view Bitcoin as a large tech stock, with a high correlation to Nasdaq in the short term.

BlockBeats News, March 25, According to CNBC, Standard Chartered Bank said that Bitcoin's correlation with the Nasdaq is generally higher than its correlation with gold, and investors can benefit from Bitcoin as a large technology stock. According to the bank's data, Bitcoin's current correlation with the Nasdaq is around 0.5, after it was near 0.8 earlier this year. At the same time, Bitcoin's correlation with gold has been declining since January, hitting zero at one point and currently just above 0.2. "Bitcoin trading has a high correlation with the Nasdaq in the short term." Geoff Kendrick, head of global digital asset research at Standard Chartered, said in a note on Monday. "This correlation suggests that Bitcoin can be included in the basket of large tech stocks. If it does, Bitcoin will play multiple roles in investors' portfolios, driving more institutional buying." Bitcoin is often seen as "digital gold" and a hedge against the risks of the traditional financial system. Kendrick said he still thinks Bitcoin can be used for this purpose, but "in reality, the demand for this type of hedging tool is extremely rare." Standard Chartered created a hypothetical index called "Mag 7B" in which Bitcoin was added to the "Magnificent 7" – Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla – and Tesla was excluded. "Since December 2017, Mag 7B has outperformed Mag 7 by about 5%." Kendrick said. "In calendar year terms, the Mag 7B has outperformed the Mag 7 in five years over the past seven years, although the advantage in 2022 was minimal. Mag 7B has performed well in terms of absolute returns, which are about 1% higher per annum than Mag 7, as well as on a calendar year basis."