On March 25, according to CNBC, Standard Chartered Bank said that Bitcoin’s correlation with Nasdaq is generally higher than its correlation with gold, and investors can benefit from viewing Bitcoin as a large technology stock.

According to the bank’s data, Bitcoin’s current correlation with Nasdaq is about 0.5, after being close to 0.8 earlier this year. At the same time, Bitcoin’s correlation with gold has continued to decline since January, once hitting zero, and is currently just above 0.2.

“Bitcoin trading is highly correlated with Nasdaq in the short term.” Geoff Kendrick, head of global digital asset research at Standard Chartered Bank, said in a report on Monday. “This correlation suggests that Bitcoin can be included in the basket of large technology stocks. If this is done, Bitcoin will play multiple roles in investors’ portfolios, thereby driving more institutional purchases.”

Bitcoin is often seen as “digital gold” and a hedge against risks in the traditional financial system. Kendrick said he still believes Bitcoin can be used for this purpose, but “in reality, the demand for this type of hedging tool is extremely rare.”

Standard Chartered Bank created a hypothetical index called “Mag 7B”, which adds Bitcoin to the “Magnificent 7” (Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), and excludes Tesla.

“Since December 2017, Mag 7B has outperformed Mag 7 by about 5%,” Kendrick said. “On a calendar year basis, Mag 7B has outperformed Mag 7 in five of the past seven years, although the advantage in 2022 is minimal. In terms of absolute returns (average annually higher than Mag 7 by about 1%), and in terms of relative returns on a calendar year basis, Mag 7B has performed well.”

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