5 min readBitcoin steadied at 87.7k on Tuesday after two days of solid gains and traded 5.5% higher over the past 7 days, tracking risk assets higher. While Bitcoin recorded gains of 1.5% yesterday, U.S. stock indices also rose higher. The Nasdaq 100 posted gains of 2.2%. Risk assets rose on optimism that Trump’s trade tariff announcements on April 2 would be less severe than initially expected.
Tech stock vs digital gold
While Bitcoin was once heralded as a hedge against economic uncertainty, it is increasingly aligning with US stocks, particularly those in the tech sector. A new study reveals that institutional adoption is shifting Bitcoin’s status from a financial safe haven to an asset within the broader tech ecosystem.
According to a report by Standard Chartered, Bitcoin’s correlation with the tech-heavy Nasdaq is 0.5, down from 0.8 earlier this year. In contrast, Bitcoin’s correlation with gold has been steadily declining since the start of the year, briefly hitting zero but now sitting just above 0.2
Standard Chartered considers that Bitcoin’s price action is similar to that of Nvidia’s, with both assets experiencing a decline at a comparable rate since Trump’s administration took office in January. The bank also believes its growing resemblance to a tech stock could be a positive, encouraging further institutional investment.
BlackRock has recently echoed the sentiment, recommending a 1% to 2% allocation of Bitcoin in portfolios, which would put it in line with tech stocks such as Amazon and Microsoft.
However, it’s also worth noting that the fundamentals surrounding Bitcoin, particularly its fixed supply, mean that it could remain a hedge against inflation and currency depreciation.
BlakRock launches BTC ETP in Europe
Adding to the institutional move, BlackRock, the world’s largest asset manager, announced it is launching Bitcoin exchange-traded products in Europe following the success of its US fund.
The iShares Bitcoin ETP will list on Euronext Paris and Xetra under the ticker IBIT and on Euronext Amsterdam under BTCN. This marks BlackRock’s first move into crypto-linked ETPs outside of North America, coming amid established demand from retail investors, with more professionals also now entering the market.
This is an encouraging next step. However, it’s worth noting that the European exchange-traded product market is significantly smaller than that in the US.
Mt Gox distribution worries
Despite these latest positive developments, there is some sign of caution in the market after Arkham Intelligence data showed that the defunct cryptocurrency exchange Mt. Gox moved $1 billion worth of Bitcoin today. 893 BTC was shifted to its hot wallet, and a further 10,608 BTC were then moved to another wallet.
Traders typically become cautious with the transferring of such large amounts of Bitcoin as it usually signals an intent to sell or distribute, which can increase supply and creating bearish sentiment.
BTC 200-day moving average
Bitcoin breaking above its 200-day moving average at around 85,000, combined with the RSI breaking above a downward trend since November, could keep buyers hopeful of more gains. Possible retest of the key psychological level 90,000.
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