For years, bitcoin trounced stocks and most other assets, and supporters pointed to that outperformance as proof it was the best store of value around. Now, one chart suggests that edge may be fading.
That chart is the S&P 500-to-bitcoin ratio. It measures how much bitcoin it takes to buy the index. Today it takes roughly 0.12 BTC, versus more than 300 BTC in 2012. The ratio moved largely lower in a steep downtrend since BTC’s inception in 2010, with the 200-week simple moving average, a barometer of long-term trend, acting like a ceiling holding a ball underwater. There were brief instances of stocks outperforming BTC, lifting the ratio, but never beyond that average.
Until now.
In recent weeks, the ratio hasn’t just topped the 200-week average, it’s established a firm foothold above it, clearly visible on the far right of the chart above. It’s not isolated to the S&P, either. The Nasdaq/BTC ratio is showing the same first-ever crossover above the 200-week average.