Bitcoin Outperforms S&P 500 as Market Dynamics Shift

Bitcoin (BTC) broke out of its recent trend of underperforming the S&P 500, rising 2.6% to over $64,000 on Monday.

This marks a rare achievement for Bitcoin as it typically moves more than stocks in both directions, but has spent most of its history being the higher-beta asset relative to equities.

According to blockchain analytics firm Glassnode, Bitcoin only outperformed the S&P 500 on around one third of trading days over the last three months, with a bear market phase playing a role in keeping demand for BTC subdued.

The AI stock frenzy on Wall Street has also sucked out capital from other corners of the financial market, including cryptocurrencies, contributing to Bitcoin's recent underperformance.