Bitcoin's Edge Over Stocks Fades as S&P Ratio Tops 200-Week Average

The bitcoin price has long been touted as a superior store of value due to its ability to outperform traditional assets like stocks. However, one chart suggests that this edge may be fading.

The S&P 500-to-bitcoin ratio measures how much bitcoin it takes to buy the index. Historically, this ratio has moved largely lower in a steep downtrend since bitcoin's inception in 2010. The 200-week simple moving average has acted as a ceiling, holding the ratio underwater.

However, recent weeks have seen the ratio top the 200-week average and establish a firm foothold above it. This is not isolated to the S&P; the Nasdaq/bitcoin ratio is showing the same crossover above the 200-week average.

This chart may be painful for bitcoin bulls as it suggests that bitcoin's era of outsized rallies versus equities has likely ended. For macro traders, the stocks-to-bitcoin ratio that no longer moves decisively in favor of BTC undercuts the cryptocurrency's appeal as an asset capable of single-handedly lifting a portfolio higher.

Some analysts see this as bitcoin growing up and entering a new phase where it is harder to move violently due to increased liquidity and trading volumes.