Bitcoin Shatters Months-Long Underperformance Streak Against US Equities

Bitcoin's price surge has finally flipped its months-long trend of underperforming US equities. The cryptocurrency skyrocketed by 25% over two days, from around $65,000 to almost $80,000, before its run was paused.

The notable price recovery is even more interesting due to a new development highlighted by Glassnode: BTC has started substantially outperforming the S&P 500 after months of doing the opposite. In fact, BTC only outperformed the index on around one third of trading days over the last three months, marking its longest underperformance streak in six years.

According to Glassnode, bitcoin had been consistently failing to initiate substantial rallies since being rejected at $83,000 in May. Meanwhile, the S&P 500 charted consecutive all-time highs. However, the trend started showing cracks before BTC's recent surge.

The cryptocurrency's better days have seen it dwarf the stock market, with the magnitude of its excess returns being considerably larger. The latest deviation is a prime example, as BTC moved in the right direction and reached a three-month peak while US equities marked their first losing week in a month.