Bitcoin is set to reclaim its position above traditional assets like stocks and bonds, as it has recently ended its longest period of underperformance against the S&P 500, according to Mark Connors, chief investment officer at Risk Dimensions.
Mark Connors, former global head of portfolio management at Credit Suisse, asserts that Bitcoin has exited its historic underperformance phase and is positioned to outperform stocks, bonds, and gold amid persistent inflation.
By Helene Braun|Edited by Stephen Alpher May 23, 2026, 7:00 p.m. 2 min read
Key Insights:
- Mark Connors suggests Bitcoin may be entering a new phase where it outperforms traditional assets, having concluded its longest-ever underperformance against the S&P 500 in early May.
- He argues that ongoing inflation, sustained high oil prices, and a "higher-for-longer" interest rate climate are putting pressure on bonds, possibly favoring Bitcoin over both stocks and fixed income.
- Connors notes a shift in investor focus from gold to Bitcoin and highlights technological advancements, particularly in AI and blockchain, as critical in combating inflationary challenges.
According to Mark Connors, Bitcoin BTC$76,359.36 might be entering a fresh period of outperforming traditional investment assets as inflation continues to exert pressure and bond markets weaken.
Connors, who previously led portfolio management at Credit Suisse, indicated that Bitcoin has just emerged from its longest recorded period of underperformance against the S&P 500, which lasted 142 days and concluded in early May.
“I believe Bitcoin’s period of underperformance against the markets has come to an end,” Connors remarked in an interview. “It’s transitioning from a consolidation phase into one of outperformance.”
This transition occurs as investors contend with stubborn inflation, increasing oil prices, and uncertainty surrounding interest rates. Connors pointed out that bonds, often seen as safe investments, are facing mounting pressure as markets adapt to an environment of persistently high interest rates.
“Bitcoin usually takes an initial hit, but it ultimately rebounds faster than others,” he stated, predicting that Bitcoin could continue to outperform both stocks and bonds as investors navigate through challenging news and persistently high oil prices.
Connors linked the current macroeconomic landscape to ongoing geopolitical tensions and high energy costs. He explained that elevated oil prices this year have heightened inflation fears and prompted markets to look towards technological innovations and productivity improvements as potential solutions.
He emphasized that advancements in AI and blockchain are becoming increasingly interconnected as companies seek decentralized systems for machine-driven transactions and automation.
“The only way to effectively combat inflationary pressures is through technology,” Connors asserted.
He also highlighted a notable shift in investor preferences from gold to Bitcoin, likening the current situation to 2020 when gold initially thrived during the pandemic's onset before Bitcoin made a significant comeback.
“Gold has had its moment,” he said. “Now, Bitcoin is on the rise.”
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