In recent years, Bitcoin has often been considered 'digital gold', a safe-haven asset amid traditional market volatility. However, according to a recent analysis from Standard Chartered, Bitcoin may not act as a hedge against volatility and instead is trading more like a technology stock.
Could Bitcoin Be the New Member of the 'Magnificent 7'?
Geoff Kendrick, an analyst at #StandardChartered , tested an interesting hypothesis: If Bitcoin were added to the 'Magnificent 7' group instead of Tesla, how might this portfolio perform?
The Magnificent 7 (Mag 7) originally included Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla – the largest tech corporations in the world. Kendrick created a new version called 'Mag 7B', in which Bitcoin replaces Tesla.
The results show that from 2017 to now, if investors adopted this strategy, the Mag 7B portfolio outperformed Mag 7 by about 5%. This proves that Bitcoin is exhibiting characteristics more similar to technology stocks rather than a traditional asset like gold.
Bitcoin Has a Scale as Large as a 'Tech Giant'
Currently, Bitcoin has a market capitalization of $1.7 trillion, making it the sixth largest asset in the Mag 7B group.
With prices recently nearing $88,000, $BTC is still highly volatile but the overall trend is long-term growth. According to data from CoinGecko, BTC has increased by 3.7% in the past 24 hours, indicating strong interest from investors.
Moreover, the open interest in Bitcoin futures has increased by more than 10% in the past day, reaching $57 billion, according to CoinGlass. Previously, when the market was affected by President Donald Trump's tariff policies, this figure had dropped to $45 billion. But as market sentiment improved, traders returned to Bitcoin.
Returns and Volatility of Bitcoin Compared to Tesla
In addition to returns, another important point that Kendrick emphasized is that Bitcoin has lower volatility than Tesla when included in the #Mag7B portfolio.
Specifically, during the period from 2017 to 2024, Mag 7B had an average annual volatility nearly 2% lower than #Mag7 . This means Bitcoin not only delivered better performance but also carried less risk compared to Tesla in the investment portfolio.
This is quite surprising as Bitcoin is considered one of the most volatile assets. But compared to a stock like Tesla – which experiences a lot of volatility due to news and business conditions – Bitcoin has shown more stability at certain times.
Is Bitcoin 'Decoupling' from Gold and Traditional Securities?
One of the biggest debates among Bitcoin investors is: Does BTC correlate with gold and traditional stocks?
In the fourth quarter of 2024, Bitcoin seems to have completely decoupled from gold and securities. According to NYDIG, BTC has outperformed all other asset classes, demonstrating its role as an independent investment channel.
Kendrick also pointed out that since Trump took office on January 20, 2025, Bitcoin has traded more like the Mag 7 stocks than gold or other traditional assets.
When comparing the price drops and trading volumes, he noted that:
Bitcoin has volatility similar to Nvidia (NVDA)
Tesla is trading more like Ethereum (ETH)
Is Bitcoin the New 'Technology Stock'?
With the above data, it can be seen that Bitcoin is gradually being regarded as a technology stock rather than a decentralized asset or a safe haven.
This raises the question: Is Bitcoin really a 'technology stock' in the eyes of investors?
Although Bitcoin does not have revenue or profits like a company, its price volatility and trading behavior increasingly resemble those of premium tech stocks. This could lead investment funds and traders to change their approach to Bitcoin, viewing it as part of a tech portfolio rather than an independent asset.
👉 What do you think? Is Bitcoin really becoming a 'technology stock' in the financial world? 🚀