Bitcoin Closes Performance Gap with S&P 500 Amid ETF Surge and US Legislation Expectations

Bitcoin's price surge has closed its three-month performance gap with the S&P 500 index. Over the past 72 hours, Bitcoin's rally was strong enough to close the entire performance gap it had lost in the previous three months. According to Glassnode's session rewind chart, the BTC-to-S&P 500 relative-performance ratio increased from around 2.2x to approximately 2.82x.

Several factors contributed to this sudden change, including Bitcoin's price action rallying from $62K to around $78K in a few days. Additionally, the Bitcoin ETF market recorded $1.92 billion in the past week, and expectations around U.S. crypto legislation and Treasury actions helped calm bond-market stress.

Despite the positive momentum, some caution is warranted as the RSI index has entered overbought territory. This could lead to a pullback, following the pattern of every race to the overbought or oversold territory.