Bitcoin Breaks Six-Year Underperformance Streak Against S&P 500

Bitcoin staged one of its most powerful rallies in years this week, surging more than 22% to approach $79,000 and breaking a six-year streak of underperformance against the S&P 500.

The cryptocurrency climbed from roughly $63,000 to nearly $80,000 in less than five days, erasing almost three months of losses and putting it on track for its strongest weekly performance since February 2024.

According to Glassnode, Bitcoin had underperformed the S&P 500 on roughly two out of every three trading days over the past three months, the longest such streak in six years. During that period, the benchmark index posted consecutive all-time highs while Bitcoin languished after being rejected at the $83,000 level in May.

Samson Mow, chief executive of Bitcoin technology company Jan3, argued that Bitcoin has never experienced what he considers its first genuine bull market, despite the asset's substantial historical gains. He suggested that reclaiming $126,000 would not necessarily represent the beginning of a true bull phase and that substantially higher valuations are necessary to outperform inflation.

The transformation in market sentiment has been almost as dramatic as the price move itself. Just days before the rally, Bitcoin was struggling near its lows, altcoins were deeply depressed, and social media was filled with claims that crypto was dead. Traders who had spent weeks waiting for a recovery were becoming increasingly frustrated.