Bitcoin's Long-Running Edge Over Stocks May Be Losing Steam

Bitcoin's outperformance over the stock market has been a notable trend for years. However, a recent chart suggests this may be coming to an end.

The S&P 500 hit a fresh all-time high this week while Bitcoin remained in a drawdown. The S&P 500-to-Bitcoin ratio, which measures how much Bitcoin is needed to buy one unit of the S&P 500, has been rising since June and recently broke above its 200-week moving average for the first sustained period on record.

This development is significant because it suggests that the stock market may be outperforming Bitcoin in the long term. The ratio has historically risen when Bitcoin outperforms the S&P 500, but this trend appears to be reversing.

Despite this, some analysts are still bullish on Bitcoin's prospects. Capriole Investments founder Charles Edwards pointed out that July was a tough month for risk assets, citing a failed peace deal between the US and Iran as one of the contributing factors.