Bitcoin Defies Stocks and Gold, Willy Woo Highlights Four-Year Track Record

Bitcoin's performance over the past month has been impressive, with a 7% gain in September while the S&P 500 was largely unchanged and gold fell by more than 6%, according to Santiment. This marks a significant rebound for the crypto market, with a large portion of the altcoin market also participating.

The influx of fresh capital, including billions of dollars into US spot Bitcoin ETFs, has been a key factor supporting the rally. Additionally, the macroeconomic backdrop has improved, with August inflation coming in below expectations and temporarily pushing Treasury yields lower.

According to Willy Woo, on-chain analyst, Bitcoin has never underperformed stocks over a four-year investment horizon. Woo notes that Bitcoin's compound annual growth rate (CAGR) is 42%, surpassing Renaissance Technologies' 39% return for investors.

While the crypto market is entering the fourth quarter with stronger momentum than stocks or gold, there are still risks to be aware of, including rising bond yields and excessive leverage, which could trigger sharp pullbacks.