Bitcoin resembles tech stocks more than gold, study finds

A new study from Standard Chartered suggests that Bitcoin is more similar to tech stocks than to gold. The bank found that Bitcoin is closely linked to the Nasdaq stock index. Currently, Bitcoin's correlation with the Nasdaq is around 0.5, down from a peak of 0.8 this year. In contrast, its connection to gold has decreased significantly, now sitting just above 0.2. Geoff Kendrick, head of digital assets research at Standard Chartered, believes that Bitcoin could be included in a portfolio of large tech stocks. According to him, this shift in perspective could attract more institutional investors. He argues that Bitcoin is often viewed as "digital gold," but the actual need for Bitcoin as a hedge against financial risks is rare. Standard Chartered has created a theoretical index called "Mag 7B," which includes Bitcoin and other major tech stocks like Alphabet and Apple. This index has performed better than a similar index without Bitcoin since December 2017, outperforming it in five out of seven years. Kendrick noted that Bitcoin's trading patterns have been similar to Nvidia's since Donald Trump's inauguration, with both assets showing comparable declines. He encourages investors to view Bitcoin as a part of their tech investments as well as a financial hedge. Despite recent market volatility, such as the impact of Trump's tariff threats, Bitcoin is seen as having potential for better performance later this year.