A former Credit Suisse executive says bitcoin has ended its longest underperformance streak against the S&P 500 and may rally as inflation persists.
Bitcoin has exited its longest period of underperformance against the S&P 500, lasting 142 days until early May, according to investor Mark Connors. The shift suggests a potential outperformance phase for the cryptocurrency over stocks, bonds, and gold.
Connors cites persistent inflation, elevated oil prices, and a “higher-for-longer” interest-rate environment as factors pressuring traditional assets. He argues that investors are rotating from gold to bitcoin, supported by advancements in AI and blockchain technology.
The breakout follows a period of market uncertainty, with stubborn inflation and rising oil prices fueling expectations of prolonged monetary policy tightening. Connors expects bitcoin to benefit from these macroeconomic conditions.