How Do Bitcoin’s Gains Compare to S&P500?

As the S&P 500 reached an all-time high on Friday, it celebrated the second anniversary of its bull market.

While traditional equities have thrived, Bitcoin’s remarkable rise over the same period has garnered attention, with its price increasing from around $20,000 to over $63,000—an impressive 220% gain.

During the last two years, the S&P 500 has seen a 60% rise, climbing to roughly 5,800 points. Similarly, the Nasdaq composite jumped 78%, while the Dow Jones increased by 43%. In contrast, Bitcoin has outperformed these indices despite recent struggles to hit new highs.

The S&P 500 just hit another record high.

Up 60%+ since October 2022 lows and survived multiple double-digit pullbacks.

The silence from the bears is deafening. @ReadOpeningBell pic.twitter.com/XpwDKoSaWM

— Phil Rosen (@philrosenn) October 11, 2024

Analysts suggest that macroeconomic factors and the introduction of products like Bitcoin ETFs have contributed to Bitcoin’s price trajectory. Following a low of $14,750 in late 2022, Bitcoin surged to $73,000 in March but has since faced a decline, currently trading at about $63,250.

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Bitcoin’s October Optimism Dims as Market Struggles Persist

Some experts, like Ryan Lee from Bitget Research, anticipate that Bitcoin’s price could range between $50,000 and $80,000 before the year ends, influenced by upcoming U.S. elections. The relationship between Bitcoin and equities has evolved, with increased liquidity from the Federal Reserve’s expansive balance sheet benefiting both asset classes.

While the S&P’s gains are linked to rising corporate profits, Bitcoin’s recent success has been driven by the launch of spot Bitcoin ETFs, which have attracted significant investments. Historically, Bitcoin’s connection to equities was weak, but this is changing as institutional interest grows, aligning Bitcoin more closely with other financial assets.

Kosta Gushterov