Standard Chartered tested a new 'Magnificent 7' index, substituting Tesla for Bitcoin. The change already shows superiority in returns and stability.
Tesla Replacement: Bitcoin Strengthens Its Position
The experiment showed that Bitcoin, with its $1.7 trillion market cap, brings a stronger risk-reward balance compared to Tesla. Geoffrey Kendrick, the bank's global head of digital assets research, noted that Bitcoin is more aligned with Nasdaq than gold, suggesting it belongs in a tech-heavy portfolio. Since December 2017, the Mag 7B index has outpaced the original index by 5%, with stronger annual returns in five of the past seven years, while also being nearly 2% less volatile.
Institutional Portfolios: The Growing Role of Bitcoin
With a market cap surpassing $1.7 trillion, Bitcoin is a strong contender for institutional investments. Its increasing acceptance in global portfolios, both as a tech asset and a hedge, reinforces its positioning alongside giants like Apple and Microsoft. With the rise of Bitcoin ETFs in early 2024, trading BTC has become as seamless as trading major stocks. Kendrick believes Bitcoin now serves multiple roles, both as a hedge against traditional finance and as a key asset in tech portfolios.
Crypto Market Rises
Favorable market trends support Bitcoin. With Nasdaq struggling, investors might shift money into Bitcoin. A key U.S. tariff decision on April 2 could also impact the market, with some experts believing Bitcoin could climb toward $90,000, highlighting its role in mainstream finance. Following the news, Bitcoin is up over 3.5% on Monday, pushing the total crypto market cap to $2.9 trillion. Other major cryptocurrencies are also gaining, with Ethereum up 4%, XRP rising 3.2%, Solana jumping 6.5%, and Dogecoin increasing by 3%.
Standard Chartered's move once again underscores Bitcoin's significance in the modern investment world. The Mag 7B index, now including Bitcoin, shows high returns and stability, affirming the prudence of incorporating cryptocurrency into various portfolios.
