TLDR
- S&P 500 rose 106% in USD since 2020 but dropped 88% in Bitcoin value.
- A $100 S&P 500 investment in 2020 grew to $209.85 by mid-2025 in USD.
- The same $100 invested in Bitcoin grew to $1,473.87 by mid-2025.
- Bitcoin’s market cap of $2.47T is much smaller than S&P 500’s $56.7T.
Warren Buffett has long championed the S&P 500 as a reliable investment for long-term growth. However, recent data shows a sharp contrast between the performance of the index and Bitcoin. While the S&P 500 has surged by 106% since 2020 in USD terms, its performance has faltered significantly when measured in Bitcoin, experiencing an 88% decline. This stark difference raises questions about the relevance of traditional market indices in a world increasingly shaped by digital assets.
The S&P 500’s Performance Since 2020
The S&P 500, which tracks the performance of 500 of the largest publicly traded companies in the U.S., has seen significant growth since 2020. In USD terms, the index has surged by 106%, reaching new record highs in 2025.
The steady growth has continued to attract investors, with many, including Warren Buffett, recommending it as a core investment for those seeking stability and steady returns. Buffett’s preference for the S&P 500 is based on its historical performance, which has typically outpaced inflation, providing long-term returns for investors.
However, when the S&P 500’s performance is measured in Bitcoin, the picture looks dramatically different. According to data shared by Phil Rosen, an investor and co-founder of Opening Bell Daily, the index has fallen by 88% in Bitcoin terms. The performance of the S&P 500 in the digital asset’s denomination highlights a massive shift in the relative value of traditional assets versus Bitcoin in recent years.
Comparing the S&P 500 and Bitcoin
The S&P 500 and Bitcoin are fundamentally different types of investments. The S&P 500 represents a broad and diversified portfolio of large companies across various sectors. It is viewed as a relatively low-risk, long-term investment, with an average historical return of around 6.68% annually after adjusting for inflation. The index’s performance is closely tied to the broader economy, with a focus on established, mature companies that provide stability and steady growth.
Bitcoin, in contrast, is a single digital asset that operates in a completely different ecosystem. It was introduced in 2009 as a decentralized currency based on blockchain technology, and since then, it has attracted significant attention from investors looking for alternatives to traditional assets. Bitcoin’s scarcity, its decentralized nature, and its potential as a hedge against inflation have driven its rapid rise in value. However, it is also much more volatile, with large price swings that can result in significant gains or losses within short periods.
The dramatic difference in performance between the S&P 500 and Bitcoin highlights the volatility of digital assets compared to more traditional investments. Bitcoin has surged in value, especially in recent years, attracting investors seeking higher returns, but it also comes with higher risks.
The Role of Bitcoin in Modern Investment Strategies
Bitcoin’s explosive growth has prompted many to reconsider the role of traditional investments like the S&P 500 in their portfolios. While the S&P 500 continues to provide steady returns, Bitcoin has delivered massive growth in a relatively short period.
A $100 investment in the S&P 500 at the start of 2020 would be worth around $209.85 by mid-2025. In comparison, the same investment in Bitcoin would be worth approximately $1,473.87, illustrating Bitcoin’s substantial outperformance over the same period.
Despite its success, Bitcoin remains a more speculative investment. The asset’s extreme volatility and relatively short track record make it a riskier option compared to the S&P 500. It is also important to note that Bitcoin’s market capitalization is far smaller than that of the S&P 500, with Bitcoin valued at $2.47 trillion versus the S&P 500’s $56.7 trillion. This difference in market size plays a significant role in the volatility and potential returns of each asset.
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