Bitcoin Ends Longest Underperformance Period Against S&P 500

Bitcoin ended its longest recorded period of underperformance against the S&P 500 in early May after 142 days, according to investor Mark Connors. The cryptocurrency is now viewed by some market participants as positioned for potential gains relative to equities and fixed-income assets.

Connors, who previously served as global head of portfolio management at Credit Suisse and is now chief investment officer at Risk Dimensions, said the shift coincides with persistent inflation, structurally elevated oil prices, and a higher-for-longer interest-rate environment.

He argued that bonds face increasing pressure under these conditions. "I think bitcoin's underperformance versus markets is over," Connors said in an interview. He stated that advances in artificial intelligence and blockchain technology could help offset inflationary pressures by improving productivity and enabling decentralized systems.

He also noted a potential rotation from gold into bitcoin, comparing the situation to 2020 when gold initially outperformed before bitcoin later rallied. "Gold has had its run," Connors said. " Bitcoin traded near $74,703 as of the latest data cited in the report.