While billionaire hedge fund manager Warren Buffett has consistently advocated for investing in the S&P 500, recent data indicates that since 2020, the index has lagged behind Bitcoin by approximately 88%.
In an Oct. 5 X post by Phil Rosen, the co-founder of stock market data newsletter Opening Bell Daily, he pointed out that while the S&P 500 has risen 106% in USD value since 2020, it has “collapsed” significantly in BTC terms, generating excitement among Bitcoin enthusiasts.
The Standard and Poor’s 500, or S&P 500, is a stock market index that tracks the performance of 500 leading companies listed on stock exchanges in the United States.
Since its inception in 1957, the index has provided an annual inflation-adjusted return of roughly 6.68%, typically surpassing the average US inflation rate.
This might explain why renowned US entrepreneur Warren Buffett has often recommended the S&P 500 index as the best investment choice for the average investor, advocating a 90/10 investment strategy — allocating 90% of a portfolio to the S&P 500 and 10% to short-term US Treasury bonds.
S&P 500 sets records, as does Bitcoin
The S&P 500 has continued to achieve new records in 2025, currently sitting at $6,715.79, having increased 14.43% since the beginning of the year.
Conversely, Bitcoin is up 32% this year, reaching $125,000 for the first time ever on Saturday.
In other terms, according to OfficialData.Org, a $100 investment in the S&P 500 at the start of 2020 would grow to approximately $209.85 by July 2025, while the same $100 investment in Bitcoin would be valued at $1,473.87.
Related: Bitcoin corrects from $125K all-time high: What’s the potential bottom for BTC price?
Comparing Bitcoin and S&P 500
Nonetheless, contrasting the two investments isn’t entirely equitable.
The S&P 500 serves as a broad benchmark for the US stock market, reflecting the performance of the 500 largest publicly traded firms in the country; it is an index that is continually updated and regarded as a lower risk, lower reward investment.
On the other hand, Bitcoin is a unique digital asset with an entirely different set of narratives — focusing on scarcity, decentralization, and deflation — that has seen a surge in adoption as investors seek novel methods to enhance or preserve value.
Bitcoin is also relatively novel, experiences more day-to-day volatility, and has a considerably smaller market cap than the S&P 500, with $2.47 trillion versus an astounding $56.7 trillion.
Magazine: Bitcoin may ascend ‘very quickly’ to $150K; questions arise about altseason: Hodler’s Digest, Sept. 28 – Oct. 4
