Bitcoin Outperforms S&P 500 Since 2020, Data Shows

According to Cointelegraph, recent data highlights a significant performance gap between Bitcoin and the S&P 500 since 2020. While the S&P 500, a prominent stock market index tracking 500 leading U.S. companies, has increased by 106% in USD value, it has underperformed Bitcoin by approximately 88% in BTC terms. This disparity has sparked discussions among Bitcoin enthusiasts, as noted by Phil Rosen, co-founder of the stock market data newsletter Opening Bell Daily.The S&P 500, established in 1957, is known for delivering an annual inflation-adjusted return of about 6.68%, typically surpassing the average U.S. inflation rate. This historical performance has led renowned entrepreneur Warren Buffett to advocate for the S&P 500 as a reliable investment choice for average investors. Buffett's recommended strategy involves allocating 90% of a portfolio to the S&P 500 and 10% to short-term U.S. Treasury bonds. Despite its record-breaking performance in 2025, with the index reaching $6,715.79 and a 14.43% rise since the year's start, Bitcoin has surged by 32%, reaching an unprecedented $125,000.Investment returns further illustrate the contrast. A $100 investment in the S&P 500 at the beginning of 2020 would have grown to approximately $209.85 by July 2025, according to OfficialData.Org. In comparison, the same investment in Bitcoin would have soared to $1,473.87. However, comparing these two investment vehicles is complex due to their distinct characteristics. The S&P 500 serves as a comprehensive benchmark for the U.S. stock market, representing the performance of the largest publicly traded companies and offering a lower risk and reward profile.Conversely, Bitcoin is a singular digital asset with unique narratives centered around scarcity, decentralization, and deflation. Its adoption has surged as investors seek alternative ways to preserve or enhance value. Despite its relatively recent emergence, Bitcoin experiences more day-to-day volatility and has a significantly smaller market capitalization of $2.47 trillion compared to the S&P 500's $56.7 trillion. This difference underscores the varying risk and reward dynamics between traditional stock market investments and digital assets like Bitcoin.