For years, Bitcoin was championed as a digital alternative to gold — a hedge against inflation, fiat currency instability, and systemic financial risks. But that narrative may be shifting.
A recent report from Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, posits a compelling new thesis: Bitcoin is beginning to behave more like a Nasdaq tech stock than a hedge asset. So much so, that Kendrick suggests it could even replace Tesla in the “Magnificent 7” — the market’s elite tech-heavy index.
From Hedge to High-Growth
While Bitcoin still serves as a backstop during financial crises (such as during the collapse of Silicon Valley Bank), its trading behavior increasingly aligns with major technology stocks. According to Kendrick’s research, Bitcoin’s short-term price movements show a strong correlation with the Nasdaq Composite — a clear sign that the asset is being treated more like a tech stock than a store of value.
This reclassification may mark a turning point in how institutions and portfolio managers view BTC. As its liquidity deepens, volatility stabilizes, and correlation to tech strengthens, Bitcoin is entering new territory.
Meet the 'Mag 7B': Tesla Out, Bitcoin In
To illustrate Bitcoin’s transformation, Kendrick introduced a model called the Mag 7B Index — a modified version of the “Magnificent 7” in which Tesla is replaced by Bitcoin. The traditional lineup includes:
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Apple
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Microsoft
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Amazon
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Meta
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Alphabet
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Nvidia
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Tesla
In the Mag 7B model, Tesla is dropped and BTC is added in its place.
The Results?
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Higher cumulative returns
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Lower portfolio volatility
That’s a powerful combo — and one that’s likely to catch the attention of risk-aware investors looking for yield without excessive turbulence.
Why Target Tesla?
Tesla has been the wildcard of the Magnificent 7: a high-growth, high-volatility asset that often swings with macro news, interest rates, and Elon Musk's Twitter feed. Although still innovative, Tesla’s returns have become more erratic, particularly as competition in EV markets intensifies.
Meanwhile, Bitcoin’s growing adoption, regulatory clarity, and integration into financial products like ETFs are turning it into a more stable and predictable asset — one that still holds upside potential, but without the idiosyncratic risks that plague some equities.
Strategic Implications for Investors
So, what does all this mean for investors?
1. Diversification Redefined
Bitcoin is carving out a new space — not as a purely alternative asset, but as a legitimate player in growth-oriented portfolios.
2. Multi-Role Asset
BTC now straddles the line between being a macro hedge and a growth engine, offering protection in downturns and participation in upswings.
3. Rethinking Tech Allocations
Institutional investors may begin to rethink their tech exposure, potentially making space for digital assets alongside traditional equities.
Bitcoin at $90,000?
Kendrick isn’t just talking about long-term structural changes. He also sees short-term momentum building, driven by potential Nasdaq rebalancing and favorable macro signals — including trade tariff developments.
His near-term target for BTC? A bold $90,000.
That might seem ambitious, but if Bitcoin is increasingly treated like a high-growth tech stock, that figure may not be as far-fetched as it sounds.
Conclusion
Whether Bitcoin can fully replace a stock like Tesla in the hearts and minds of investors remains to be seen. But one thing is certain: its evolution is undeniable.
It’s no longer just a speculative bet or inflation hedge. In 2025, Bitcoin is inching closer to becoming a mainstay of modern tech-driven investment strategies — and its seat at the table may be more secure than ever.
FAQs
Why is Bitcoin being compared to a tech stock?
Bitcoin’s price action now mirrors the Nasdaq Composite in the short term, suggesting that investors are treating it more like a high-growth tech asset than a traditional hedge.
What is the “Mag 7B” index?
It’s a modified version of the “Magnificent 7” index where Tesla is replaced by Bitcoin. Research by Standard Chartered shows this revised index offers stronger returns with less volatility.
Why was Tesla selected for removal in the index?
Tesla’s volatility and unpredictable performance made it a candidate for replacement. Bitcoin, with growing institutional adoption and correlation with tech stocks, offers a more balanced risk-return profile.
What does this shift mean for portfolio managers?
It challenges traditional asset allocation models. Bitcoin may now be seen as a legitimate addition to tech and growth portfolios, not just alternative or speculative ones.