Bitcoin is just another tech stock, not a market hedge, study shows
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Bitcoin is more closely correlated to the Nasdaq than it is to gold most of the time, and investors could benefit from viewing it as another big tech stock, says Standard Chartered. Limited time: Save 25% on NBC News subscription Get exclusive reporting, live Q&As and ad-free reading. Bitcoin’s correlation with the Nasdaq is currently at about 0.5, after it approached 0.8 earlier this year, according to the bank.
AI Summary
Main Idea: Standard Chartered says bitcoin acts more like a tech stock than a safe-haven asset, with its price moving more like the Nasdaq than gold.
Key Points:
- The bank said bitcoin’s correlation with the Nasdaq is much stronger than its link to gold.
- Geoff Kendrick said bitcoin could fit in a portfolio with large tech stocks and may draw more institutional buying.
- Standard Chartered’s test index, which added bitcoin to the “Magnificent 7,” did slightly better than the original group over time.
- The bank said bitcoin can still work as a hedge, but that need is rare and investors now see it as both a hedge and a tech-like asset.
Impact on the People
Negative Impact
Bitcoin acting more like a tech stock could add bigger swings to household savings and retirement accounts during market drops.
Positive Impact
Standard Chartered says bitcoin may attract more institutional buying, which could support prices for small investors and businesses holding crypto.
How did each entity affect people?
Rate how each entity in this article affected the American people.
- Primary:Standard Charteredcompany
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- Standard CharteredcompanyPrimaryEvaluated
The bank is the main source of the article’s argument about bitcoin behaving like a tech stock and.
Include 0 (0%)Ignore 0 (0%)5 to threshold - AlphabetcompanyContextCandidate
One of the named Magnificent 7 companies used in Standard Chartered’s comparison basket.
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One of the named Magnificent 7 companies used in Standard Chartered’s comparison basket.
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One of the named Magnificent 7 companies used in Standard Chartered’s comparison basket.
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One of the named Magnificent 7 companies used in Standard Chartered’s comparison basket.
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One of the named Magnificent 7 companies used in Standard Chartered’s comparison basket.
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Highlighted in the article’s comparison of bitcoin trading behavior and included in the hypothetical index.
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Named in the comparison basket and discussed in relation to bitcoin and ether performance.
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