Geoffrey Kendrick of Standard Chartered has discovered a strong correlation between Bitcoin and Nasdaq composites.
Bitcoin can efficiently serve as a backup plan in an uncertain economic environment and as a proxy for rapidly growing tech stocks such as Tesla and Apple, according to reports and new data from Geoffrey Kendrick, head of digital asset research at Standard Chartered.
Kendrick and his team have found a strong correlation with the short-term movement of Bitcoin with Nasdaq Composite, a stock market index that includes almost all of the stocks listed on the Nasdaq Stock Exchange.
Reports say Kendrick created a virtual “Mag 7b” index that replaces Bitcoin with Tesla in the famous “magnificent 7b.” “Magnificent 7” often includes top technology names such as Apple, Microsoft, Amazon, Meta, Alphabet, Nvidia, and Tesla. He believes Bitcoin is mature beyond its niche digital assets.
According to Kendrick, replacing Tesla with Bitcoin with “MAG 7B” could result in greater returns than the original MAG 7, and reduce volatility, suggesting that Bitcoin can balance its portfolio more than some legacy tech giants.
In 2013, CNBC commentator Jim Cramer created the acronym Fang (Facebook, Amazon, Netflix, Google) for Catch-All, referring to Mega-Cap Tech Growth Stocks.
In 2023, Bank of America analyst Michael Hartnett began calling their future “epical seven” that bet their future on secular trends worth tens of billions to hundreds of millions of dollars, including artificial intelligence, cloud computing, online gaming, and next-generation hardware and software.
Analyst Ali Martinez noted that while positive developments on March 24th are promising, the TD sequential indicator, which first warned of Bitcoin’s recent bottom, indicates that the short-term top is approaching. If some investors use this signal to lock profits, the market could face more turbulence.
According to Kraken Price Feeds, Bitcoin is trading at $87,947.36 at press time.