Standard Chartered's Geoffrey Kendrick, has found a strong correlation between Bitcoin and the Nasdaq Composite.

According to reports and new data from Standard Chartered's Head of Digital Asset Research, Geoffrey Kendrick, Bitcoin can efficiently serve as a backup plan during an uncertain economic environment and as a proxy for fast-growing tech stocks such as Tesla and Apple.

Kendrick and his team have discovered a strong correlation of Bitcoin's short-term movement with the Nasdaq Composite, a stock market index that includes nearly all stocks listed on the Nasdaq stock exchange.

As per reports, Kendrick crafted a hypothetical "Mag 7B" index that substitutes Bitcoin for Tesla in the famous "Magnificent 7B". The "Magnificent 7" often includes top tech names such as Apple, Microsoft, Amazon, Meta, Alphabet, Nvidia, and Tesla. He believes that Bitcoin is maturing beyond a niche digital asset.

According to Kendrick, replacing Tesla with Bitcoin in the "Mag 7B" can yield larger returns and reduced volatility than the original Mag 7, suggesting Bitcoin can balance a portfolio better than some legacy tech behemoths.

In 2013, the CNBC commentator Jim Cramer created the catch-all acronym FANG (Facebook, Amazon, Netflix, Google) to refer to the mega-cap tech growth stocks, according to U.S. News.

In 2023, Bank of America analyst Michael Hartnett started calling them the "Magnificent Seven," stocks that stake their futures on secular trends worth hundreds of billions to trillions of dollars, such as artificial intelligence, cloud computing, online gaming, and next-generation hardware and software.

While the positive developments are promising, analyst Ali Martinez noted on March 24, that the TD Sequential indicator that first warned of Bitcoin's recent bottom is now indicating a short-term top might be on the way. The market might face more turbulence if some investors use this signal to lock in profits.

According to Kraken price feeds, Bitcoin is trading at $87,947.36 at press time.