Despite record highs, data reveals the U.S. stock index has dramatically underperformed compared to Bitcoin’s explosive gains.
While the S&P 500 continues to reach record levels in 2025, new data highlights a striking reality — the index has fallen 88% in Bitcoin terms since 2020. This comparison, though unconventional, underscores how digital assets continue to outpace traditional equities in long-term performance metrics.
According to market data shared by analyst Phil Rosen, the S&P 500 has climbed 106% in U.S. dollar value since 2020. However, when measured against Bitcoin’s massive price surge, the same index has effectively “collapsed” in BTC denomination. The revelation sparked widespread discussion among investors, particularly as Bitcoin recently crossed the $125,000 mark for the first time.
“Measured in Bitcoin, the S&P 500 has been in a bear market for nearly five years,” said one market strategist. “It’s a reminder that the yardstick you choose determines the story you tell.”
Buffett’s Trusted Benchmark Faces a New Reality
Since its inception in 1957, the S&P 500 has delivered a steady 6.68% annual inflation-adjusted return, making it a cornerstone of Warren Buffett’s investment philosophy. The billionaire has repeatedly advised retail investors to favor low-cost index funds tied to the S&P 500, often endorsing a 90/10 strategy — 90% in equities, 10% in short-term Treasury bonds.
Yet, despite Buffett’s unwavering faith in the index, Bitcoin’s returns have dwarfed traditional assets. Based on data from OfficialData.org, a $100 investment in the S&P 500 at the start of 2020 would now be worth about $209.85, while the same investment in Bitcoin would have grown to roughly $1,473.87.
Different Assets, Different Games
Experts caution that comparing the S&P 500 and Bitcoin isn’t entirely fair. The S&P 500 represents 500 of the largest publicly traded companies in the U.S., reflecting diversified corporate growth and stability. Bitcoin, by contrast, is a single decentralized asset driven by scarcity, adoption, and macroeconomic sentiment.
“The S&P 500 is designed for steady wealth preservation, while Bitcoin is a speculative asset built for asymmetric upside,”. “They serve different investor goals entirely.”
Even so, Bitcoin’s 32% year-to-date gain compared to the S&P 500’s 14.43% rise continues to challenge long-standing investment orthodoxy. With its $2.47 trillion market cap, Bitcoin remains smaller than the S&P 500’s $56.7 trillion, but its performance narrative is impossible to ignore — a reminder that in the evolving financial landscape, digital assets are rewriting the rules of value.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.