After months of struggling to keep pace with US equities, Bitcoin has reversed its relative performance trend against the S&P 500. The primary cryptocurrency experienced a notable price recovery, surging over 25% from under $65,000 to nearly $80,000 within a two-day span.
Data from analytics firm Glassnode highlights that prior to this movement, Bitcoin underperformed the S&P 500 on approximately two out of every three trading days over the preceding three months. Glassnode noted that this marked Bitcoin's longest streak of relative underperformance against the benchmark US index in six years, a period during which BTC failed to mount substantial rallies following a rejection at $83,000 in May, while the stock index charted consecutive all-time highs.
Signs of a shifting trend appeared prior to the broader market rally. On a Monday session, the S&P 500 slipped by over 0.5% while Bitcoin posted a 2% increase. The divergence became more pronounced when Bitcoin underwent its major run, even as the S&P 500 and Nasdaq snapped a three-week winning streak with losses of 1% to 2%.
Historically, Bitcoin has tended to dwarf the stock market on its stronger days due to larger excess returns. Analysts note, however, that it remains premature to declare a decisive decoupling, as the cryptocurrency has repeatedly traded as a high-beta risk asset influenced by liquidity, interest-rate expectations, and broader risk sentiment.
While Bitcoin gained over 25% weekly and reached a three-month peak while US equities marked a losing week, market observers emphasize that a single strong trading sequence is not yet sufficient to definitively confirm a long-term shift in investor trends.
