Is Bitcoin digital gold or just a tech stock in disguise?

When US stocks plummeted by almost 4%, with NVDA down by 7% and Apple down by 4%, Bitcoin dropped by almost 15%. Why did this happen?

Since the middle of February we have seen US markets crash, whether this is a result of geopolitics, recession fears or negative speculation we noticed one interesting thing about its effects on another major market. Cryptocurrency is known to be a highly volatile, speculative and liquid market. Another characteristically volatile, highly liquid market that comes to mind is the tech sector. Characterised by rapid innovation, high growth potential and intense competition. Tech stocks like Nvidia, Tesla and Apple are experiencers of serious price swings as investors react to new product launches, earnings reports and shifts in market trends.

So what is cryptocurrency? Cryptocurrency or simply “crypto” is a digital currency that operates on a decentralised system using blockchain technology. This contrasts with traditional nationally backed and managed currencies by governments and central banks like the AUD$ or USD$. Bitcoin or BTC, is the largest and most widely recognised cryptocurrency, and its performance is often seen as representative of the broader crypto market.



Bitcoin’s price has tracked blue chip tech stocks such as Apple, Amazon and Microsoft all year. Cryptocurrency and stock markets are generally known to be somewhat correlated largely as a result of the cryptocurrency's high volatility. There is an overlap of factors affecting both equity markets and cryptocurrency prices, including macroeconomic trends, interest rates, inflation expectations, and overall investor risk appetite. Not only that but its high volatility can also make it sensitive to reactions in other markets. Traders and investors are increasingly treating cryptocurrency the same way they treat stocks, with Bitcoin behaving similarly to high-growth, high-beta tech stocks rather than a hedge against market instability. As institutional adoption grows, Bitcoin’s correlation with equities, especially tech heavy indices like the NASDAQ-100 continues to strengthen, challenging its narrative as an independent asset class.

Using indexes, S&P 500 as a benchmark for the broader stock market, and the NASDAQ-100 for tech stocks, we can see that Bitcoin’s price closely follows the movement of both indexes. The past month’s sharp downturn in the equity markets has had a noticeable impact on Bitcoin’s price.

Now looking at Nvidia (NVDA), one of the more volatile tech stocks, we see an even stronger correlation with BTC than with the broader S&P 500 or NASDAQ-100. Both NVDA and BTC experienced sharp price swings in response to market wide risk-off attitude.


Takeaways?

Bitcoin is becoming more integrated into traditional finance, making it less of an isolated, alternative asset. Investors must consider Bitcoin’s growing sensitivity to equity market fluctuations, particularly in times of economic uncertainty. Bitcoin might have been once thought of as "digital gold" however in the current landscape Bitcoin acts more like a speculative risk asset rather than a pure inflation hedge. Bitcoin's role may continue to evolve, offering both challenges and opportunities for investors who understand its shifting dynamics.

Subscribe to our newsletter

Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.

Is a Share Advisor

right for you?

By Studiohawk Studiohawk July 30, 2025
About SAP SE SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR, time, payroll, talent and employee experience management, and analytics and planning; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; industry solutions that provides customers and partners with industry-specific solutions; and SAP LeanIX to visualize their as-is enterprise architecture, assess interdependencies and the potential impact of IT modernization, and manage the transition toward the target landscape with established practices and a detailed roadmap. Further, the company provides WalkMe to execute workflows across various number of applications; SAP Enable Now, which offers e-learning content embedded in SAP workflows; Taulia solutions for working capital management to help businesses create and deliver the right cash flow strategy, and the flexibility to adjust it to meet liquidity challenges; and sustainability solutions and services. Additionally, it provides services and support solutions. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany. Key Stats
July 28, 2025
This week's Stock Spotlight is NASDAQ-listed Netflix Inc. About Netflix Inc. Netflix, Inc. provides entertainment services. The company offers television (TV) series, documentaries, feature films, and games across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. The company operates approximately in 190 countries. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California. Source: Yahoo Finance Key Stats
July 28, 2025
About Region Group Region Group is an internally managed real estate investment trust (REIT) with 92 convenience-based retail properties, valued at $4,368 million. We remain the largest owner of convenience-based retail centres with 7% share of the market, which is dominated by private owners. This asset class has proven to be resilient due to its exposure to nondiscretionary retail categories, including long leases with grocery-based anchor tenants. Region (originally SCA Property Group ASX: SCP) was created out of Woolworths Group Limited (Woolworths) in late 2012, when ownership in a number of retail properties was transferred. Since our announcement in November 2022, we have been operating under our new name, Region Group (ASX: RGN). Our portfolio benefits from long leases to Woolworths and Coles Group Limited (Coles), which act as our anchor retail partner at more than 96% of our properties. At the heart of our strategy are our customers. This means the places we create will deliver both a practical and positive experience, as we work to be the first choice for essentials at a place nearby. Operating responsibly is of great importance to our business, our communities and our security holders, and we are well placed in delivering our environmental, social and governance commitments. The value of our business is more than its physical properties. It lies in the wellbeing of our people and the prosperity of our retailers as we work together to provide for the essential needs of our customers. Our positioning means we are resilient as a business, capable of delivering growth to our security holders, people, customers and the communities we serve. Our values are what guide us in how we deliver on our ambition. Key Stats
July 28, 2025
This week's Stock Spotlight is ASX-listed JB Hi-Fi Limited . About JB Hi-Fi Limited. JB Hi-Fi Limited retails home consumer products. The company operates through three segments: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys. It provides computers; monitors and projectors, printers and ink, data storage devices, keyboards and mice, computer accessories, as well as software, home internet and wi-fi products, and office furniture; televisions; headphones, speakers, and audio devices; and smart home appliances. The company also offers mobile phones; gaming devices; music and vinyl products; movies and TV shows; and collectibles and merchandise, including apparel and card and board games. In addition, it provides content creator gears for vloggers and influences, game streamers, podcasters, and music producers and DJs; cameras; drones and e-scooters; and fitness, health, and wellbeing products, such as smart watches, fitness trackers, massagers, health monitors, air treatment devices, sleep solutions, smart drink bottles, as well as shavers and trimmers, and hair and oral care products. Further, the company offers home appliances consisting of washers and dryers, fridges and freezers, dishwashers, vacuuming and cleaning products, small kitchen appliances, microwaves, coffee and beverages machines and accessories, hair and oral care products, shavers and trimmers, and facial cleansing and beauty products, as well as heating, cooling, and air treatment products. Additionally, it provides outdoor and travel products comprising garden and outdoor living, home security and monitoring, and travel and in-car tech solutions; action and dash cameras, binoculars, drones, and smart drink bottles; electric scooters and boards; and information technology and consulting services. It sells its products through branded retail store network comprising JB Hi-Fi/JB Hi-Fi Home stores in Australia; JB Hi-Fi stores in New Zealand; and The Good Guys stores in Australia, as well as online. The company was founded in 1974 and is based in Southbank, Australia. Source: Yahoo Finance Key Stats
July 4, 2025
Get the latest Macquarie Group Ltd (ASX:MQG) stock updates, technical analysis, forecasts & investment insights. See if MQG is the right stock for you.
July 4, 2025
Stay updated on Westpac Banking Corporation (ASX:WBC) with stock updates, technical analysis, forecasts & insights. See if WBC aligns with your investment goals.
May 23, 2025
Explore expert insights on ANZ Group Holdings Ltd (ASX:ANZ) stocks, including share price trends, dividends, growth potential & investment strategies.
May 23, 2025
Discover expert insights on the National Australia Bank Limited (ASX:NAB) stock, including share price trends, financial performance & investment tips.
By Iqtidar Rahman April 9, 2025
When navigating during uncertain or volatile market conditions, investment portfolios should prioritise caution and flexibility. Holding a healthy cash position is essential as the saying goes ‘cash is king’. Certainly, during frequently shifting market sentiment, facilitating readiness to act when genuine opportunities arise is crucial. For new investments, confirmation of trend reversals or stability before entering positions is a strategy to avoid catching falling knives. For new investments, waiting for confirmation of trend reversals or market stability before entering positions is a prudent strategy to avoid catching falling knives. Implementing a dollar-cost averaging (DCA) approach enables positions to be built gradually, helping to mitigate the effects of market volatility and emotional decision-making. A balanced investment strategy assists in managing risk while positioning a portfolio to capitalise on potential rebounds.
April 7, 2025
Get the latest BHP Group Ltd (ASX:BHP) stock updates, technical analysis, market forecasts & investment insights. See if BHP is the right stock for you today.