According to Standard Charged, Bitcoin is still just another trade to Wall Street. They are assembled with technical arrows and traded like one. It is captured when it is useful and throw when it is not.
Bank He said On Monday, Bitcoin’s association with the Nasdak Stock Exchange became about 0.5, and earlier this year, it rose to 0.8. At the same time, his association with gold collapsed. Since January, this association has decreased to zero at one point. Now above 0.2.
“Bitcoin trading is closely related to the Nasdak paper during short time horizons.” He said this trend is the reason that Bitcoin should be seen as another large technical trade.
Kindrik added, “If it is included [in a tech basket]The implicit meaning is the institutional purchase as BTC will serve multiple purposes in investor portfolios. “
This is not new. Wall Street continues to switch how he sees encryption. One month, it is a technical play. The following month is “hedging against the traditional system.” But Kindrik did not deny the idea of ​​hedge. he He said“In fact … the need for such hedges is very rare.”
Standard Charted adds Bitcoin to Tech Stock Experience Mag 7B
Meanwhile, Standard Charterd also formed a new index called MAG 7B. This one takes the wonderful technical stocks 7 – the alphabet, the Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla – but it expels Tesla and adds Bitcoin in its place.
Kindrik said that since December 2017, Mag 7B surpassed the regular Mag 7 by about 5 %. This happened in five out of seven evaluation years, although the lead in 2022 was small. On average, Mag 7B returned about 1 % a year more than MAG 7. He said the gains were not huge but were consistent.
He also compared Bitcoin fluctuation with NVIDIA over a longer period. Since January 20, when Donald Trump took office again, Bitcoin decreased about 16 %, and Nafidia decreased by 12 %. Meanwhile, Tesla crashed 36 %. This is similar to the ether, which decreased by 38 % at the same time.
“Investors can see Bitcoin as being heavily against [traditional finance] As part of technology customization. He added that the role of Bitcoin in Portfolios has become more solid and that this double purpose may attract more money, especially after it has been more adopted by institutions.
The fluctuation from the Trump tariff puts bitcoin under pressure
Since Trump began paying customs duties again, Bitcoin has decreased about 5 % for this year. Standard Chartard said this is not surprising, because Bitcoin tends to respond to total economy operators. The bank referred to two specific patterns: Bitcoin usually moves when the money supply grows (M2), and decreased at the rise of the US dollar index (DXY). These relationships are still active.
Traders are now awaiting relief in the second quarter, in the hope that Bitcoin will bounce as the market gets more clarity on the definitions. But the White House kept the marketing markets. American stock futures were flat on Monday night, March 24. This came after a day when the main indexes had risen in the hope that Trump would wear his plans.
S&P 500 and NASDAQ futures decreased by 0.1 %, while Dow Jones Futures fell 43 points. The frequency came after earnings earlier that day, as reported by the Wall Street Journal. According to their report, the White House may reduce the upcoming definitions, which is supposed to walk live on April 2.
Morgan Stanley says the market will not last long
On the same two, Mike Wilson spoke from Morgan Stanley to CNBC’s Fast money. He described the current recovery as “a low -quality gathering.” He said that he started with short pressure, and now it is led by small technologies, such as profit reviews that settled in some of the Mag 7 names. Wilson said: “In the last two days, though, stocks have behave better, and this can take the index higher. How high 5900. So, we are almost there.”
The market was a strong start for the week. On Monday, S&P rose by 1.8 % and closed at 5,767.57. This is still less than 6 % less than its high record. Dow added approximately 600 points, and the Nasdaq boat increased by more than 2 %.
The wonderful seven were a large part of this gathering. These include Apple, Nvidia, Meta, Amazon, Alphabet, Microsoft and Tesla. Tesla has witnessed the best daily gain since November.
But Wilson does not believe that the momentum will last long. He wrote on Monday note that the gathering has limits. He said: “It supports the strongest season, less prices, and momentum indicators in the sale, our invitation to a trading gathering of about 5500.” He also stated that the estimates of weaker and steadfast profits from large technology shares can return capital to American stocks. But after this short -term step, he warned that fluctuation does not go anywhere.
“Whatever the gathering we get now, we most likely believe that it fades to the profits, and until May and June. Then, we will likely make low -durable later in the year,” Wilson added.
He blamed the weakness in the markets, not for the definitions, but on the basics and technology. “The reason is that the markets are less over three or four months, it has nothing to do with definitions,” Wilson said. “It is mostly related to the fact that the profit reviews have erupted [Department of Government Efficiency]. All these things are negative growth. “
At the time of the press, the bitcoin value was worth $ 87,722.
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