Bitcoin (BTC) outperformed most major tech stocks on April 3 and April 4 as markets reeled from steep losses across the so-called “Magnificent Seven” (MAG7).
Standard Chartered head of digital asset research Geoffrey Kendrick said Bitcoin’s relative resilience signals a growing role as a dual-purpose asset — part growth trade, part hedge against macro risks.
In an April 4 research note shared with CryptoSlate, Kendrick highlighted that all seven tech giants were in the red, with Nvidia, Google, and Meta falling nearly 8% or more.
In contrast, Bitcoin and Microsoft posted milder declines of around 3%, with Ethereum (ETH) also faring better than most of the MAG7.
Bitcoin and Microsoft were the strongest performers, each declining by roughly 3%, while Ethereum followed closely behind.
“Strongest performers were MSFT and BTC. Same again so far today in BTC spot and tech futures.”
Tech proxy and broader hedge
Kendrick argued that Bitcoin’s strong performance compared to legacy markets in the current market indicates the divergence is not a one-off event.
Kendrick said Bitcoin “trades more like tech stocks than it does gold most of the time,” suggesting that BTC tends to rise and fall with risk-on assets. However, he emphasized that its utility goes beyond just speculative upside.
During moments of structural stress in traditional finance, such as the March 2023 collapse of Silicon Valley Bank, Bitcoin has acted as a hedge, providing investors with an alternative to banking sector exposure. Kendrick categorized this as Bitcoin’s usefulness as a “TradFi hedge.”
Kendrick believes a new use case is emerging: a hedge against “US isolation.” Though he didn’t define the term, it likely refers to increasing geopolitical decoupling, concerns over U.S. economic dominance, or rising de-dollarization narratives.
Kendrick further argued:
“Over the last 36 hours, I think we can also add ‘US isolation’ hedge to the list of Bitcoin uses.”
Critical resistance in sight
Looking ahead, Kendrick noted Bitcoin may be approaching an important technical breakout following the positive US labor market report on April 4.
According to Kendrick:
“A break back above the critical $85k level looks likely today, post payrolls. That opens up a move back to the $88.5k pre-tariff level from Wednesday (likely this weekend).”
He concluded that Bitcoin is proving to be “the best of tech,” benefiting when growth stocks rally while also offering defensive characteristics across multiple market regimes. He concluded his analysis with a simple message for long-term believers in Bitcoin:
“HODL.”
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