Bitcoin could stand out as Magnificent 7’s ’strongman’: Standard Chartered

Published 04/04/2025, 11:10
Updated 04/04/2025, 14:12
© Reuters

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.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.