Bitcoin May Underperform S&P 500 for First Time in a Decade
The post Bitcoin May Underperform S&P 500 for First Time in a Decade appeared on BitcoinEthereumNews.com.
Bitcoin stumbles against stocks in 2025, marking the first underperformance versus the S&P 500 since 2014, as AI-driven equity gains outpace crypto amid redirected investor flows to metals and tech sectors, ending a decade of relative outperformance. Bitcoin’s 2025 return trails S&P 500 by over 19 percentage points, per Bloomberg data. AI enthusiasm and rising precious metals diverted speculative capital from cryptocurrencies. ETF inflows slowed, with Bitcoin dropping nearly 30% from its October peak of $126,000. Bitcoin stumbles against stocks for the first time in a decade in 2025, as S&P 500 surges 16% on AI hype while BTC lags. Discover why and what it means for investors. Stay informed on crypto trends. What Does It Mean When Bitcoin Stumbles Against Stocks? Bitcoin stumbles against stocks when its yearly performance falls short of major equity indices like the S&P 500, signaling a shift in investor preferences away from cryptocurrencies. In 2025, this marks a historic reversal, with Bitcoin poised to end the year roughly 3% lower while stocks climb over 16%, according to Bloomberg projections. This divergence breaks a pattern established since 2014, where Bitcoin typically outpaced or matched equity gains during risk-on periods. Why Is Bitcoin Underperforming the S&P 500 in 2025? The underperformance stems from multiple factors reshaping market dynamics this year. Early in 2025, Bitcoin surged to record highs above $126,000, fueled by optimism around pro-crypto policies following Donald Trump’s re-election. However, this momentum faded rapidly due to forced liquidations across leveraged positions and a noticeable decline in retail investor participation. By late October, prices had retreated nearly 30%, stabilizing around $88,135, as enthusiasm waned. Meanwhile, the S&P 500 benefited from robust gains in artificial intelligence-related stocks, with sectors like technology and semiconductors driving the index’s impressive run. Bloomberg data highlights that U.S. equities are on track…
