Markets Bitcoin Outperforms S&P 500 with 2.6% Gain Amid Market Decline
BTC surpassed Wall Street on Monday, breaking its trend of lagging behind U.S. equities.
By Omkar Godbole | Edited by Jamie Crawley 59 min ago 1 min read
Bitcoin BTC$64,138.49 achieved a notable milestone on Monday by outpacing the S&P 500.
The leading cryptocurrency increased by 2.6%, surpassing the $64,000 mark, marking its strongest daily performance in over a month. In contrast, Wall Street's key equity index, the S&P 500, fell by 0.52%.
This movement was significant as it indicated a rare instance of Bitcoin not only outperforming equities but also moving in the opposite direction. Historically, Bitcoin has been considered a higher-beta asset compared to stocks, typically exhibiting greater volatility in both upward and downward trends.
“BTC outperformed the stock market today. This has become a less common occurrence lately. In fact, BTC only outperformed the S&P 500 on about one-third of trading days over the last three months,” stated blockchain analytics firm Glassnode in a Telegram chat.
Bitcoin's underperformance on two-thirds of trading days has led to a perception of it acting less like a higher-beta asset and more like a laggard. Factors contributing to this trend include the recent surge in AI stocks on Wall Street, which has diverted capital away from various sectors, including cryptocurrencies.
The ongoing bear market phase of Bitcoin's typical four-year cycle has also dampened demand. Bitcoin reached a peak of over $126,000 in October last year before entering a bear market, which is anticipated to reach its lowest point by October this year.
BTC has mostly underperformed the S&P 500 in recent months. (Glassnode)