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    S&P 500 Rises 106% Since 2020 but Falls Short Compared to Bitcoin

    Ethan CarterBy No Comments3 Mins Read
    S&P 500 Rises 106% Since 2020 but Falls Short Compared to Bitcoin

    While billionaire hedge fund manager Warren Buffett has consistently advocated for investing in the S&P 500, recent statistics indicate that since 2020, the index has lagged behind Bitcoin by approximately 88%. 

    In a post on Oct. 5, X by Phil Rosen, co-founder of the stock market data newsletter Opening Bell Daily, noted that while the S&P 500 has soared 106% in USD value since 2020, it has significantly “collapsed” in BTC value, leading to enthusiasm from Bitcoin advocates. 

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    The S&P 500 has experienced an 88% drop in nominal BTC value since 2020. Source: Phil Rosen

    The Standard and Poor’s 500, commonly known as the S&P 500, tracks the performance of 500 major companies listed on U.S. stock exchanges. 

    Since its inception in 1957, the index has provided an annual inflation-adjusted return of approximately 6.68%, typically exceeding the average inflation rate in the U.S. 

    This may explain why renowned U.S. entrepreneur Warren Buffett has often recommended the S&P 500 index as the optimal choice for average investors, reportedly endorsing a 90/10 investment strategy — allocating 90% of a portfolio to the S&P 500, and 10% to short-term U.S. Treasury bonds. 

    S&P 500 Continues to Set Records, Bitcoin Does Too

    The S&P 500 has been breaking new records in 2025, currently sitting at $6,715.79, reflecting a 14.43% increase since the year’s beginning. 

    Conversely, Bitcoin has surged 32% this year, reaching an unprecedented $125,000 on Saturday. 

    To put it in perspective, according to OfficialData.Org, a $100 investment in the S&P 500 at the start of 2020 would grow to about $209.85 by July 2025, whereas the same investment in Bitcoin would escalate to $1,473.87.

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    Growth on a $100 S&P 500 investment since 2020. Source: OfficialData.Org

    Related: Bitcoin Corrects from $125K All-Time High: What’s Next for BTC Prices?

    Comparative Analysis of Bitcoin and the S&P 500

    Nevertheless, juxtaposing these two investments is not entirely equitable. 

    The S&P 500 serves as a broad benchmark for the U.S. stock market, reflecting the performance of the country’s 500 largest publicly traded companies, with an index that is continually updated, considered to be a lower risk and reward investment.