Bitcoin Surges 24% Year-to-Date, Outperforming S&P 500 by 15%

The US stock market's V-shaped recovery since April has driven the S&P 500 Index to record highs. On Thursday, the S&P 500 Index closed at a record high of 6,280.46, extending its year-to-date gain to 7%. However, when measured in Bitcoin (BTC), the large-cap index is down 15% so far in 2025. This underscores the digital asset’s strong outperformance. Bitcoin’s price surged to a new all-time high on Friday, briefly topping $118,800. BTC has gained 5.5% in the past 24 hours, 9% over the last week and is up 24% so far this year.

Bitcoin has dramatically outperformed the benchmark stock index since its inception. Its performance against major tech stocks like Nvidia, Tesla, and Netflix has been equally remarkable. Analyst Charlie Bilello highlighted Bitcoin’s meteoric rise over the past decade compared to these and other assets, underscoring BTC’s standout outperformance. Bitcoin’s record rally this year has been fueled in part by growing institutional demand, with investors pouring money into BTC spot exchange-traded funds (ETFs) alongside traditional equity funds. As of Friday, the 12 US spot Bitcoin ETFs held a combined 1,264,976 BTC worth $148.6 billion, representing over 6% of Bitcoin’s total supply. In the first half of 2025, strong demand for Bitcoin helped push digital asset ETFs to the third-largest fund category by inflows, behind only short-term government debt and gold. On Thursday, US spot Bitcoin ETFs saw their second-largest daily inflow on record, bringing in a total of $1.17 billion.

The S&P 500 Index reached an all-time high of 6,280 on Thursday, driven by strong investor sentiment and enthusiasm for artificial intelligence and cryptocurrencies. This rally was bolstered by Nvidia's significant milestone, which reinforced confidence in the ongoing AI boom. Meanwhile, Bitcoin surged to a new all-time high, brushing off geopolitical jitters sparked by Trump’s latest salvo on tariffs. Despite the political noise, investors remained focused on tech momentum and risk-on signals from the crypto space, helping stocks lock in another record-setting session. The Dow Jones added 192 points, or 0.4%, to finish at 44,651, while the Nasdaq rose 0.1% to 20,631. The Russell 2000 outperformed with a 0.5% gain to close at 2,264.

However, despite the S&P 500's record high, the index is still down 15% in Bitcoin terms. This discrepancy highlights the significant gains made by Bitcoin, which has surged to a new all-time high of $118,403.89. The sharp rally in Bitcoin is being fueled by strong institutional demand, pushing US Bitcoin ETFs to new heights. This institutional interest in Bitcoin has outpaced the S&P 500's rise, which has increased by 7% so far this year. The surge in Bitcoin has also lifted crypto stocks, further contributing to the overall market sentiment. The market's focus on tech momentum and risk-on signals from the crypto space has helped offset new trade threats from Trump. Investors have remained resilient in the face of geopolitical jitters, with the market continuing its short-term consolidation. The S&P 500 index gained 0.27% on Thursday, reaching a marginally higher all-time high of 6,290.22. This record high was achieved despite the S&P 500 dropping roughly 0.5% from its previous record high. The Nasdaq also inched higher on Thursday, with the S&P 500 eking out a fresh record close as Nvidia stock and Bitcoin climbed to new highs.

The market's resilience in the face of geopolitical jitters and trade threats highlights the strength of the current bull market. Investors have remained focused on tech momentum and risk-on signals from the crypto space, helping stocks lock in another record-setting session. The S&P 500's record high, despite being down 15% in Bitcoin terms, underscores the significant gains made by Bitcoin and the overall strength of the market. The market's focus on tech momentum and risk-on signals from the crypto space has helped offset new trade threats from Trump, with investors remaining resilient in the face of geopolitical jitters.