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Investing.com -- Standard Chartered (LON:STAN) analyst Geoff Kendrick recently made the case that Bitcoin (BitfinexUSD) tends to trade more like tech stocks than gold.
The financial institution also pointed out that Bitcoin can be a useful hedge in traditional finance situations, such as the SVB collapse in March 2023.
Amid yesterday’s massive selloff in the global stock market, Standard Chartered observed that Bitcoin could also serve as a hedge against "U.S. isolation." Yesterday’s top performers were Microsoft Corporation (NASDAQ:MSFT) and Bitcoin, they noted.
Kendrick now anticipates a likely rise in Bitcoin price value, with the cryptocurrency potentially breaking back above the critical $85,000 level after payrolls. This could pave the way for a return to the $88,500 level from Wednesday, which is expected to happen this weekend.
"Bitcoin is proving itself to be the best of tech (upside when stocks go up) and a hedge in multiple scenarios," the institution noted.
Earlier, Kendrick proposed a hypothetical scenario where Bitcoin replaces Tesla (NASDAQ:TSLA) in the Magnificent 7 index, resulting in a new index called Mag 7B, with B standing for Bitcoin.
His analysis showed that Mag 7B could generate both higher returns and lower volatility than the original Mag 7 index.
The research firm believes that Bitcoin could serve multiple purposes in investor portfolios over time, acting as both a traditional finance hedge and a tech stock proxy.