All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Bitcoin Outperforms S&P 500 in Rare Daily Gain

Created at 18 Aug · 10:06 AM1 source↑ Market-relevant
IN SHORT

Bitcoin surged 2.6% to over $64,000 on Monday, marking its best daily performance in over a month and outperforming the S&P 500, which fell 0.52%. This divergence is a rare occurrence in recent months, as bitcoin has largely trailed U.S. equities.

Key Numbers

2.6%Bitcoin daily price increase
$64,000Bitcoin price level
0.52%S&P 500 daily price decrease
one thirdtrading days bitcoin outperformed S&P 500 in last 3 months

Who's Involved

Glassnode
blockchain analytics firm that noted bitcoin's recent underperformance
Bitcoin Outperforms S&P 500 in Rare Daily Gain

↳ Why This Matters

Bitcoin's ability to move independently from or even opposite to traditional equity markets like the S&P 500 is a key characteristic that attracts investors seeking diversification and higher potential returns. Its recent correlation with stocks has raised questions about its role as a hedge or uncorrelated asset.

Key facts

  • Bitcoin increased by 2.6% to exceed $64,000 on Monday.
  • The S&P 500 index declined by 0.52% during the same trading session.
  • This performance represents bitcoin's strongest daily gain in over a month.
  • Bitcoin has recently underperformed the S&P 500 on approximately two-thirds of trading days over the past three months.

Bitcoin experienced a notable gain on Monday, rising 2.6% to surpass $64,000, marking its best daily performance in over a month. This surge occurred as the S&P 500, a benchmark U.S. equity index, fell by 0.52%. The divergence in performance is significant, as bitcoin has recently spent most of its time acting as a laggard to stocks, outperforming on only about one-third of trading days over the past three months.

Historically, bitcoin has been considered a higher-beta asset, typically moving more than stocks in both directions. However, its recent underperformance has been attributed to factors such as the strong rally in AI-related stocks on Wall Street, which has drawn capital away from other markets including cryptocurrencies. The ongoing bear market phase of bitcoin's four-year cycle, which is expected to bottom out by October this year, has also contributed to subdued demand for the cryptocurrency.

Frequently asked questions

Bitcoin rose by 2.6% to over $64,000 on Monday, its best daily performance in over a month.

The S&P 500 fell by 0.52% on Monday.

Factors include the AI stock frenzy drawing capital away and the ongoing bear market phase of bitcoin's four-year cycle.

What Happens Next

01Monitor bitcoin's performance relative to the S&P 500 in upcoming trading sessions.
02Observe potential shifts in capital flows between AI stocks and cryptocurrencies.
03Track bitcoin's price action as it approaches the expected bottom of its four-year cycle.

How It Developed

Bitcoin rose 2.6% to over $64,000 on Monday.
The S&P 500 fell 0.52% on the same day.
Bitcoin's performance was its best daily gain in over a month.
This marks a rare instance of bitcoin outperforming and moving opposite to U.S. stocks.

Sources

T1
Bitcoin scores a rare win over S&P 500 with 2.6% rise versus 0.5% fallCoinDesk

Related Stories

Bitcoin Tracks Equities Amid ETF Outflows, Solana Sees Inflows
17 Aug · 10:51 AM
Bitcoin Tops $64,000 as Other Cryptos Decline
18 Aug · 4:36 AM
Solana's PUMP Token Sees Bullish Technical Signals Amidst Revenue Growth
17 Aug · 6:35 PM
Bitcoin Holds $64,000 Amid Rising Yields and Oil Prices
18 Aug · 8:21 AM
Bitcoin ETFs See Outflows Amid Stable Price Action
17 Aug · 6:10 PM