The post Bitcoin is just another trade to Wall Street—and it’ll dump it in the end like always appeared on BitcoinEthereumNews.com.

According to Standard Chartered, Bitcoin is still just another trade to Wall Street. It’s being grouped with tech stocks and traded like one. It gets picked up when it’s useful and tossed when it’s not. The bank said on Monday that Bitcoin’s correlation with the Nasdaq is now around 0.5, and earlier this year, it went up to 0.8. At the same time, its link with gold has collapsed. Since January, that correlation dropped to zero at one point. Now it’s just above 0.2. Geoff Kendrick, global head of digital assets research at Standard Chartered, wrote in the report, “Bitcoin trading is highly correlated to the Nasdaq over short time horizons.” He said this trend is why Bitcoin should be looked at as another big tech trade. Kendrick added, “If it were included [in a tech basket], the implication would be more institutional buying as BTC would serve multiple purposes in investor portfolios.” This isn’t new. Wall Street keeps switching how it sees crypto. One month, it’s a tech play. The next month it’s a “hedge against the traditional system.” But Kendrick didn’t deny that hedge idea. He said, “In reality… the need for such hedges is very infrequent.” Standard Chartered adds Bitcoin to tech stock experiment Mag 7B Meanwhile, Standard Chartered has also made up a new index called the Mag 7B. That one takes the Magnificent 7 tech stocks — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla — but kicks Tesla out and adds Bitcoin in its place. Kendrick said that since December 2017, Mag 7B outperformed the regular Mag 7 by about 5%. That happened in five out of seven calendar years, even though the lead in 2022 was tiny. On average, Mag 7B returned about 1% more per year than Mag 7. He said the…

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Filed under: News - @ March 25, 2025 3:24 am