Standard Chartered Bank: Investors can view Bitcoin as a large tech stock with high short-term relevance to NASDAQ

On March 25th, according to CNBC, Standard Chartered Bank stated that Bitcoin's association with NASDAQ is usually higher than its association with gold, and investors can view Bitcoin as a large tech stock to benefit from it. According to the data from the bank, the current correlation between Bitcoin and Nasdaq is about 0.5, which was previously close to 0.8 earlier this year. Meanwhile, the correlation between Bitcoin and gold has been continuously declining since January, reaching zero at one point and currently only slightly above 0.2. Bitcoin trading has a high correlation with Nasdaq in the short term, "said Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, in a report on Monday. This correlation suggests that Bitcoin can be included in a large basket of technology stocks. If this is done, Bitcoin will play multiple roles in investors' investment portfolios, thereby driving more institutions to buy Bitcoin is often seen as "digital gold" and a hedge against risks in the traditional financial system. Kendrick stated that he still believes Bitcoin can be used for this purpose, but "in reality, the demand for such hedging tools is extremely rare Standard Chartered Bank has created a hypothetical index called 'Mag 7B', which includes Bitcoin in the 'Magnificent 7' technology stocks, namely Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, and excludes Tesla. Since December 2017, the performance of Mag 7B has been about 5% higher than that of Mag 7 Kendrick said. Calculated by calendar year, in the past seven years, Mag 7B has outperformed Mag 7 in five years, although the advantage in 2022 is minimal. In terms of absolute returns (averaging about 1% higher than Mag 7 each year), as well as in calendar year terms, Mag 7B has performed well in relative returns