Recently, the traditional financial giant Standard Chartered Bank gave a striking evaluation of Bitcoin, stating that Bitcoin is evolving into a 'dual asset' that can hedge financial risks and rival tech stocks.
The bank's Head of Digital Asset Research, Geoffrey Kendrick, boldly suggested in the latest report to directly replace Tesla (TSLA) and include Bitcoin in the famous 'Tech Giants' index, which would increase the index's return rate.
Standard Chartered Bank's Bitcoin research report.
On March 24, a research report released by Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered Bank, pointed out that Bitcoin's performance highlights its increasingly important role in investment portfolios. He believes that Bitcoin can not only hedge the risks of traditional finance (TradFi) but can also be included as part of tech stocks.
To validate this argument, Kendrick's team created a revised index, removing Tesla (the smallest member of the original tech stock group) and replacing it with Bitcoin. From 2020 to 2024, this revised index 'Mag 7B' outperformed the original tech stock index overall.
The results of the report show that the Mag 7B index not only has a higher return rate but also lower volatility. This indicates that investors can view Bitcoin as a tool to hedge traditional finance, as well as part of tech stock allocations.
The report specifically mentions that the momentum of institutional investor inflow into Bitcoin is becoming stronger, especially after the U.S. approved spot Bitcoin ETFs. As Bitcoin investment becomes more institutionalized, its position in global portfolios will be further solidified.
Notably, Bitcoin's 'dual nature' can be closely correlated with the Nasdaq index in the short term; if faced with financial risk events such as the collapse of Silicon Valley Bank, it can quickly transform into a 'safe-haven asset.'
The winds of the cryptocurrency market are blowing in.
Kendrick also predicts that as U.S. tariff policies may ease, coupled with a rebound in tech stocks, Bitcoin is likely to challenge the $90,000 mark this week. However, he also warns that Bitcoin needs a larger catalyst to sustain new highs.
The most disruptive view of this report is that Bitcoin may be breaking the boundaries of traditional asset classification. It is neither simply 'digital gold' nor merely a 'substitute for tech stocks,' but it has created an entirely new asset class. This mixed characteristic is precisely the most scarce quality in global asset allocation over the next decade.
Conclusion:
In summary, Standard Chartered Bank's research shows that Bitcoin is not only a tool for hedging financial instability but can also be regarded as a genuine tech stock.
As Bitcoin's position in global portfolios continues to rise, institutional investors' interest in it is also increasing. This week's market reaction to tariff announcements and the performance of the Nasdaq may have further significant effects on Bitcoin.
What do you think about Bitcoin as a 'dual ace'? Do you believe it can truly balance the high growth rate of tech stocks and the stability of gold? We look forward to your insights in the comments!
