While billionaire hedge fund manager Warren Buffett has long touted investing in the S&P 500, recent data shows that since 2020, the index has underperformed Bitcoin by around 88%.
On Oct. 5, X post by Phil Rosen, the co-founder of stock market data newsletter Opening Bell Daily, noticed that while the S&P 500 has surged 106% in USD value since 2020, it has “collapsed” Bitcoin enthusiasts are cheering the significant increase in BTC.
The Standard and Poor’s 500, or S&P 500, is a stock market index tracking the performance of 500 leading companies listed on stock exchanges in the United States.
Since 1957, this index has produced an inflation-adjusted annual return of approximately 6.68%. That is typically higher than the US average inflation rate.
Warren Buffett, the famous US businessman who has a plethora of wealth and success in his name may have been influenced by this. frequently touted the S&P 500 index as the best option for the average investor, and reportedly supports a 90/10 investment strategy — with 90% of a portfolio in the S&P 500, and 10% in short-term US Treasury bonds.
S&P 500 breaks records, but so does Bitcoin
The S&P 500 has continued to break new records in 2025 and is currently at $6,715.79, having risen 14.43% since the start of the year.
Bitcoin has risen 32% in the past year, after it reached $125,000. first time ever This Saturday
According to another phrase, OfficialData.Org, the return from investing $100 in the S&P 500 from the beginning of 2020 would turn into around $209.85 by July 2025. A $100 Bitcoin investment would yield $1,473.87.
Related: Bitcoin corrects from $125K all-time high: Where will BTC price bottom?
Differences between Bitcoin and the S&P 500
It’s not fair to compare the two investment options.
The S&P 500 is a comprehensive benchmark for the US stock market, representing the performance of the 500 largest publicly traded companies in the country, an index that is constantly updating, and is seen as a lower risk and reward investment.
Bitcoin, on the other hand, is a singular digital asset with a completely different set of narratives — centered around scarcity, decentralization and deflation — that has exploded in adoption as investors look for new ways to increase or retain value.
Bitcoin is also relatively new, sees more day-to-day volatility and has a significantly smaller market cap than the S&P 500, at $2.47 trillion compared to a whopping $56.7 trillion.
Magazine: Bitcoin may move ‘very quick’ to $150K, altseason doubts: Hodler’s Digest, Sept. 28 – Oct. 4
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Source: cointelegraph.com
