tl;dr
Bitcoin's price is close to a five-month low, but it has strengthened against top tech companies since Nov. 5. On Monday, one Bitcoin was worth around 1,993 shares of the Roundhill Magnificent Seven ETF, up from 1,756 shares a year ago. This indicates Bitcoin's relative strength against tech stocks....
Bitcoin's value has shown resilience against top tech stocks despite recent market turmoil. Since November 5, the largest cryptocurrency by market value has strengthened against the "Magnificent Seven," a group of Nasdaq firms, including tech giants like Apple, Nvidia, and Tesla. On Monday, one Bitcoin was worth around 1,993 shares of the Roundhill Magnificent Seven ETF (MAGS), up from 1,756 shares a year ago. This indicates Bitcoin's relative strength against tech stocks.
The trade war initiated by U.S. President Donald Trump has led to a 10% drop in the S&P 500 over the past week. However, despite recent price fluctuations, some experts view Bitcoin as a resilient store of value. Matthew Sigel, head of digital assets research at asset manager VanEck, highlighted that the ratio of Bitcoin to the Roundhill Magnificent Seven ETF shares had reached an all-time high, indicating its strength against tech stocks. Moreover, Bitcoin's relative strength against the Magnificent Seven stocks was at its highest level within the past year on Monday, rising 13.5% over that period.
Although Bitcoin has recently traded similarly to a tech stock, some market participants see this as a divergence. There is a discussion about whether this could be a turning point for Bitcoin to shine as a resilient short and long-term store of value amidst market turmoil. Despite Bitcoin's price falling to a new low for Trump's second term, it is still above its Election Day price, unlike the S&P 500 which gave up its post-election gains. As Thomas Perfumo, Kraken's global economist, pointed out, the cryptocurrency market has endured worse situations and historically emerged stronger each time, suggesting that it may weather the current storm as well.