Bitcoin’s Staggering Lead: S&P 500 Hits Record, Still Trails BTC Performance
The traditional stock market has seen a strong recovery, with the S&P 500 Index recently reaching new record highs. While this marks a positive turn for conventional investments, a look at its performance measured in Bitcoin tells a different story, highlighting the significant outperformance of the leading cryptocurrency in the broader crypto market.
S&P 500 Reaches Record, But How Does It Fare Against Bitcoin?
The S&P 500 Index closed at a record high of 6,280.46 on Thursday, extending its year-to-date gain to 7% as of that point in 2025. This represents a substantial recovery since April. However, when this performance is measured against Bitcoin (BTC), the picture changes dramatically. According to market commentator The Kobeissi Letter, citing Bitbo data, the large-cap index is actually down 15% against Bitcoin so far this year.
Looking at a longer timeframe, the contrast is even more stark. The Kobeissi Letter also pointed out that the S&P 500 has seen a staggering drop of 99.98% against Bitcoin since 2012. This long-term data underscores Bitcoin’s remarkable growth trajectory compared to traditional stock market benchmarks like the S&P 500.
Why Bitcoin Continues to Outpace the Stock Market
Bitcoin’s price surge this year has been significant. On Friday, BTC briefly topped $118,800 on Coinbase, marking a new all-time high. Its recent performance includes gains of 5.5% in 24 hours, 9% over the last week, and a 24% increase year-to-date.
While Bitcoin has consistently outperformed the S&P 500 since its inception, its lead extends beyond just the broad index. Analyst Charlie Bilello highlighted Bitcoin’s impressive rise over the past decade compared to major tech stocks such as Nvidia (NVDA), Tesla (TSLA), and Netflix (NFLX), further illustrating BTC’s standout performance against key players in the stock market.
Bitcoin ETF Demand Fuels Institutional Inflows
A key driver behind Bitcoin’s record rally in 2025 is the growing institutional demand, particularly through spot Bitcoin exchange-traded funds (ETFs). Investors are allocating capital into these BTC funds alongside traditional equity funds, signaling increased acceptance and integration of cryptocurrency into mainstream portfolios.
Data from Bitbo on Friday showed that the 12 US spot Bitcoin ETFs collectively held 1,264,976 BTC, valued at $148.6 billion. This represents over 6% of Bitcoin’s total supply now held within these regulated investment vehicles.
The demand for Bitcoin via ETFs has been robust. State Street data indicates that in the first half of 2025, digital asset ETFs ranked as the third-largest fund category by inflows, trailing only short-term government debt and gold. While State Street’s data encompasses ‘digital assets’ broadly, Bitcoin funds have accounted for the vast majority of these investment dollars in the United States. This trend was highlighted by the second-largest daily inflow on record for US spot Bitcoin ETFs on Thursday, totaling $1.17 billion.
Summary: Bitcoin’s Enduring Strength in the Crypto Market
Despite the S&P 500’s recent record-breaking performance, its gains are modest when measured against Bitcoin. The data clearly shows Bitcoin’s significant outperformance against the S&P 500 and other major stocks over various timeframes. Fueled by increasing institutional adoption and strong inflows into Bitcoin ETFs, Bitcoin continues to demonstrate its position as a high-performing asset in the evolving financial landscape, solidifying its lead within the broader crypto market.
