Bitcoin News: Warren Buffett’s Favorite S&P 500 Has Crashed 88% Against Bitcoin Since 2020

Key TakeawaysThe S&P 500 has surged 106% in U.S. dollar terms since 2020, but collapsed 88% against Bitcoin over the same period.Bitcoin (BTC) hit a new all-time high of $125,000 this weekend, outperforming nearly every traditional asset.Buffett’s famed 90/10 investment rule — 90% in the S&P 500 and 10% in short-term Treasury bills — is again under scrutiny as digital assets outperform equities.Experts note that while comparisons are not apples-to-apples, Bitcoin’s deflationary design continues to attract long-term investors seeking protection from fiat debasement.S&P 500 Hits Record Highs — But Not Against BitcoinBillionaire investor Warren Buffett has long championed the S&P 500 index as the most reliable path to long-term wealth creation.Yet new data shows that, despite record highs in 2025, the index has dramatically underperformed Bitcoin.According to Phil Rosen, co-founder of Opening Bell Daily, the S&P 500 has gained 106% in USD terms since 2020, but when priced in BTC, it has fallen roughly 88%, effectively “collapsing” against the world’s largest cryptocurrency.The S&P 500 — which tracks 500 of America’s top public companies — has historically delivered inflation-adjusted annual returns of around 6.7%.Buffett has often pointed to this consistency as proof that broad-based equity exposure beats active stock picking over time.Bitcoin’s Rise Leaves Traditional Assets BehindWhile the S&P 500 trades near an all-time high of $6,715.79, up 14.4% year-to-date, Bitcoin has surged 32% in 2025, hitting a record $125,000 over the weekend.Based on data from OfficialData.org, a $100 investment in the S&P 500 at the start of 2020 would now be worth about $210.The same $100 invested in Bitcoin would have grown to nearly $1,474 — a gain that eclipses traditional market benchmarks by a wide margin.Why the Comparison Isn’t Entirely FairDespite Bitcoin’s explosive returns, experts caution that the comparison isn’t straightforward.The S&P 500 represents a diversified basket of blue-chip companies across multiple sectors and is designed for long-term, lower-risk compounding.Bitcoin, by contrast, is a single, highly volatile digital asset with a fixed supply of 21 million coins, often seen as a hedge against inflation and monetary debasement.Moreover, the market capitalization gap remains vast:Bitcoin: $2.47 trillionS&P 500: $56.7 trillionThat difference underscores Bitcoin’s speculative edge but also its potential for further upside if adoption continues to expand.While Warren Buffett continues to favor the S&P 500 for its stability and proven compounding power, the past five years have clearly belonged to Bitcoin.As the digital-asset market matures and institutional adoption deepens, the “Buffett portfolio” may need to be re-examined for a generation of investors seeking returns beyond the traditional 6–7% range.