On Monday, Bitcoin $BTC$64,087.35 achieved a notable milestone by outpacing the S&P 500 index.
The leading cryptocurrency increased by 2.6%, surpassing the $64,000 mark, marking its strongest daily gain in over a month, as reported by CoinDesk. In contrast, the S&P 500 index experienced a decline of 0.52%.
This performance reflects Bitcoin’s divergence from traditional equities, showcasing a reversal of recent trends. Historically, Bitcoin has been regarded as a higher-beta asset compared to stocks, typically exhibiting more extreme price fluctuations.
According to blockchain analytics company Glassnode, “$BTC outshone the stock market today. However, such occurrences have grown rarer. Remarkably, $BTC has only surpassed the S&P 500 on about one-third of trading days in the past three months,” as shared in a Telegram discussion.
With Bitcoin underperforming two-thirds of the time, it suggests a shift from its usual role as a higher-beta asset to functioning more like a laggard. Factors contributing to this trend include the recent surge of AI stocks on Wall Street, which has diverted investments away from both stocks and cryptocurrencies.
Additionally, Bitcoin’s prolonged bear market, typical of its four-year cycle, has also contributed to the diminished demand for $BTC. After reaching a peak exceeding $126,000 in October of last year, it quickly transitioned into a bear market, with predictions suggesting it may hit its lowest point by October this year.