According to reports from Risk Dimensions, bitcoin recently broke out of what had been its longest stretch of underperformance against the S&P 500 in history, a 142-day period that ended in early May. Mark Connors, former Credit Suisse global head of portfolio management and current CIO at Risk Dimensions, stated that 'I think bitcoin's underperformance versus markets is over. It's in the consolidation phase [that] has shifted into an outperformance phase'. The shift marks a significant turning point for the cryptocurrency after an extended period of weakness against traditional asset classes.
Sui Network launched protocol-level gasless stablecoin transfers on its mainnet, allowing users to send select U.S. dollar-pegged stablecoins without paying gas fees or holding SUI tokens. Real Vision co-founder Raoul Pal, a former Goldman Sachs hedge fund manager, called the development 'a big deal' and stated that 'The cost of anything digital that is not scarce goes to zero in fees'. SUI's price rose more than 4% over the past 24 hours to around $1.11, outperforming Bitcoin and most major cryptocurrencies during a broader market pullback tied to rising oil prices. On Stocktwits, retail sentiment around the token improved to 'bullish' from 'neutral' territory over the past day, while chatter climbed to 'high' from 'low' levels.
Bitcoin was trading at $75,700, down from overnight highs around $77,800, as reported by latest market data. The cryptocurrency's recent performance comes amid broader market strength, with major stock indexes ending higher Friday ahead of the holiday weekend, with the Dow Jones Industrial Average setting intraday and closing records and the S&P 500 posting its eighth straight week of gains. The blue-chip Dow, benchmark S&P 500, and tech-heavy Nasdaq Composite closed Friday up 0.6%, 0.4%, and 0.2% respectively, with all three indexes ending higher for the week. For the year, the Nasdaq, S&P 500, and Dow are up more than 13%, 9%, and 5% respectively, demonstrating strong market momentum across asset classes.
Despite recent volatility, Bitcoin has demonstrated remarkable long-term performance with 95% returns in 8 of the past 14 years, including a 157% return in 2023 and 125% return in 2024. As reported by Motley Fool Stock Advisor, during the 2012-2025 period, Bitcoin posted double-digit returns in seven of those years, with the cryptocurrency missing the 95% threshold only once in 2019. The latest data shows Bitcoin currently trading at $78,000 with traders giving it a 9% chance of hitting $150,000 this year on Polymarket, representing roughly double its current price. This performance trajectory supports the argument that Bitcoin can be a top-performing asset over the long haul, but requires a 'set it and forget it' approach to capture its full potential.
As reported by Risk Dimensions, Connors argues that persistent inflation, structurally high oil prices and a 'higher-for-longer' interest-rate environment are pressuring bonds and could favor bitcoin over both equities and fixed income. The analyst noted that 'Bitcoin, as it always does, takes it on the chin early, but then it always comes out first', suggesting that while bitcoin may initially face headwinds, it typically recovers more strongly than other assets. He emphasized that 'Bitcoin could continue outperforming both equities and fixed income as we grind through the straits of poor news and oil persistently being high'. Current market conditions show the 10-year Treasury yield ticked lower to 4.56% from yesterday's close at 4.57%, though it touched its highest intraday level since January 2025 at 4.69% on Tuesday.
The 'set it and forget it' approach emerges as the optimal strategy for Bitcoin investment, given its volatile nature and regular market drawdowns of 77% or higher every four years. As reported by Motley Fool Stock Advisor, Bitcoin experienced market meltdowns in 2014, 2018, and 2022, with the most severe being the 2022 crash from $69,000 to $16,000 - a 77% decline. The analysis emphasizes that trying to profit from Bitcoin's short-term price swings just doesn't work due to the volatility being too great, making a long-term buy-and-hold strategy essential for capturing its potential. This approach aligns with Connors' recommendation that 'Bitcoin could continue outperforming both equities and fixed income as we grind through the straits of poor news and oil persistently being high'.
