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Is Bitcoin the New Tech Stock? Analysts Suggest a Tesla Swap

Is Bitcoin the next big tech stock? A new report from Standard Chartered suggests Bitcoin could replace Tesla in the ‘Magnificent 7’ index, offering higher returns and lower volatility. Explore the evolving role of BTC in modern portfolios.

Bitcoin has long been heralded as "digital gold" — a decentralized store of value that thrives in times of financial instability. But according to a recent report by Standard Chartered’s Head of Digital Asset Research, Geoffrey Kendrick, Bitcoin may now be evolving into something more familiar to Wall Street: a tech stock.

Kendrick’s research proposes a radical shift in how we view Bitcoin — not just as a hedge against traditional finance (TradFi) volatility, but as a growth asset that closely mirrors the behavior of Nasdaq-listed technology giants. His findings have sparked new discussions about where Bitcoin fits within the modern investment portfolio.

Table of Contents

Bitcoin’s Nasdaq Correlation: More Than Coincidence

Kendrick’s report emphasizes a growing short-term correlation between Bitcoin and the Nasdaq Composite Index, the benchmark for U.S. tech stocks. While Bitcoin continues to react to systemic shocks (such as the collapse of Silicon Valley Bank in 2023), on a day-to-day basis, it now moves in tandem with big tech.

This suggests Bitcoin has transitioned from a purely counter-cyclical asset into one that behaves more like a high-beta tech equity, with sensitivity to innovation cycles, regulatory shifts, and broader tech market momentum.

“Bitcoin may now serve dual purposes — acting both as a hedge against TradFi shocks and as a technology proxy,” Kendrick notes.

Introducing the ‘Mag 7B’ Index: Bye Tesla, Hello Bitcoin

To test this theory, Standard Chartered devised a hypothetical portfolio index: the ‘Mag 7B’, where Bitcoin replaces Tesla in the popular “Magnificent 7” — a group typically comprising Apple, Microsoft, Amazon, Meta, Alphabet, Nvidia, and Tesla.

According to Kendrick’s simulations, this swap boosts returns while reducing portfolio volatility — a rare and compelling combination for institutional investors.

Why Replace Tesla?

Tesla, once the poster child for disruptive innovation, has faced increased competition, macroeconomic pressures, and regulatory hurdles. Its stock performance, while still significant, has become more volatile and less predictable.

Bitcoin, on the other hand, despite its inherent volatility, now boasts:

  • Deep liquidity

  • A broadening investor base

  • Institutional acceptance

  • A maturing correlation with mainstream financial markets

This positions it as an alternative with potential for smoother performance over time, especially as it becomes embedded in ETF products and embraced by traditional asset managers.

Implications for Institutional Investors

The idea that Bitcoin could substitute a major stock like Tesla in a flagship tech index underscores a major shift in investor sentiment. Bitcoin is no longer on the fringe — it's edging toward the core of diversified portfolios.

Key Implications:

  • Portfolio Construction: Bitcoin might soon be seen as a core tech allocation, rather than an exotic or speculative satellite.

  • Risk Management: If BTC offers both growth and a degree of hedge-like behavior, it could help optimize risk-adjusted returns.

  • ETF Growth & Institutional Flow: As regulated investment vehicles expand access to crypto, capital inflows may increase, driving price momentum and volatility reduction.

$90,000 in Sight? Kendrick’s Short-Term Outlook

Beyond structural analysis, Kendrick is also bullish in the short term. He points to potential positive U.S. tariff news and upcoming Nasdaq rebalancing as key tailwinds for Bitcoin. His price target? $90,000.

“Higher Nasdaq equals higher Bitcoin,” Kendrick claims — further reinforcing the tech-asset thesis.

Conclusion

Is Bitcoin really becoming a tech stock, or is this just a phase of market behavior? Regardless, the evolving correlation with the Nasdaq, increased institutional exposure, and Kendrick’s bold “Mag 7B” concept raise important questions about how we categorize crypto assets in 2025 and beyond.

Whether you're a portfolio manager or a retail investor, one thing is clear: Bitcoin is no longer just a hedge. It’s a contender.

FAQs

Why are analysts comparing Bitcoin to tech stocks?

Bitcoin's short-term price movements have shown strong correlation with the Nasdaq Composite, which is heavily weighted in tech stocks. This suggests that Bitcoin now behaves more like a tech asset than a traditional hedge like gold.

What is the ‘Mag 7B’ index?

The “Mag 7B” is a hypothetical portfolio created by Standard Chartered where Bitcoin replaces Tesla in the original “Magnificent 7” lineup. The research indicates this version yields better returns with reduced volatility.

Why remove Tesla from the Magnificent 7?

Tesla has become increasingly volatile and subject to broader market pressures. Analysts believe Bitcoin may offer more consistent growth potential in tech-oriented portfolios.

Is Bitcoin still considered a hedge against traditional finance risks?

Yes, but it’s evolving. While still seen as a store of value, Bitcoin is now also acting like a growth asset, giving it a unique dual role in institutional portfolios.

What does this mean for investors?

Investors may begin to view Bitcoin not just as a speculative asset but as a viable component of mainstream, tech-weighted portfolios — especially with the rise of crypto ETFs and broader institutional adoption.

That's all for today, see ya tomorrow! If you want more, be sure to follow our X (@croxroadnewsco), Instagram (@croxroadnews.co), Youtube (@thebitcoinlibertarian), Tiktok (@croxroadnews) and nostr - [email protected]

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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