Bitcoin Closes Three-Month S&P 500 Performance Gap Amid Sharp Rally
Bitcoin's price surge has closed the three-month performance gap it had accumulated against the S&P 500. The gap, which had grown to around 3x in favor of the US large-cap stocks, was reduced to approximately 2.2x after the recent rally. However, Bitcoin's sharp rise over the past four trading sessions pushed that ratio back up to about 2.82x.
The price action alone contributed to this reversal, with BTC's price jumping from $62K to around $78K in a few days. Other factors such as the Bitcoin ETF market, which saw $1.92 billion in transactions over the past week, and expectations surrounding US crypto legislation also played a role.
Despite this resurgence, analysts warn that Bitcoin's underperformance is not permanently over. The RSI index has now entered overbought territory, suggesting that a pullback may be imminent.