Bitcoin Vs S&P 500: How the Crypto Outperformed Traditional Stocks Since 2020

• Bitcoin has outperformed the S&P 500 since 2020, sparking debate among investors.
• S&P 500 grew 106% in USD but dropped 100% in Bitcoin terms since 2020.
• Bitcoin’s rise signals its growing adoption as a valuable store of wealth despite volatility.

In the past few years, Bitcoin has performed better than the S&P 500 index, which has raised controversy among investors. Impressive gains have been being recorded by the cryptocurrency since 2020 when the conventional stock index has faltered. According to recent statistics, the performance of Bitcoin is notably outweighing Siem and Power 500 when using BTC as a measure. This has caused applause among the BTC followers.

Co-founder of Opening Bell Daily, Phil Rosen spoke on October 5. He has indicated that even though, since 2020, the S&P 500 has grown 106% in USD terms, it has fallen by 100% in BTC terms. Bitcoin fans were not slow to rejoice at such a change to the advantage of the digital currency.

Source: X

Why the S&P 500 is Buffett’s Go-To Investment

The S&P 500 index is a group of 500preeminent U.S. corporations. It has been protected as a safe and long term investment. The index has recorded an average annual inflation-adjusted gain of 6.68%. Such consistent increase has rendered the S&P 500 to be one of the best investments among investors such as Warren Buffett.

Also Read: Bitcoin (BTC) Shatters Records at $125,750 — Is $200K Next?

One of the best-known supporters of the S&P 500 is Buffett, and he suggests a portfolio approach. He recommends 90% investment in S&P 500 and 10%investment in short-term American Treasury bonds. The approach that Buffett adopted has given a number of investors great returns in the long run. According to him the S&P 500 is the most suitable one to most investors seeking stability.

S&P 500 vs Bitcoin

BTC is performing better than the S&P 500 even though the latter has been successful historically. The S&P 500 has won records as of 2025 to have a figure of 6715.79. Bitcoin, meanwhile, has also gained 32% in a year and has lately soared to the first-time high of $126,000. This expansion has triggered even greater curiosity about cryptocurrency.

Resuming from the start of 2020, an investment of $100 into the S&P 500 would be valued at approximately $209.85 in the middle of the year 2025. However, with the same investment of $100 in Bitcoin, it would be worth $1,473.87. This sharp contrast represents huge returns of BTC compared to the S&P 500.

Nevertheless it is not exactly just to compare Bitcoin with the S&P 500. S&P 500 is a general index that reflects the 500 biggest U.S. businesses. It is seen as a low-serious, low-risk investment. On the contrary, BTC is a risky electronic currency with a significantly lower capital base. It is more subject to changes but has enjoyed huge adoption in recent times.

The popularity of BTC is an indication of its suitability as a store of value. It is anchored on scarcity, decentralization and deflation, hence an endeavor worth spending on by individuals willing to substitute conventional assets. Still, it is a volatile one. Due to the precipitating growth of BTC, investors need to balance the threat and reward when deciding between the two investment options.

Also Read: Bitcoin Correlation With S&P 500, Gold Rises as Crypto Market Takes a Plunge