Bitcoin’s 58.8% return beats gold and S&P 500 – Why investors should take note

Bitcoin decouples from US bond yields as investors increasingly view Bitcoin as a store of value.
Liquidity flowing into Bitcoin currently puts it ahead of the S&P 500 and gold, suggesting that investor preferences may be changing.
Bitcoin [BTC] has maintained its position as a top market asset, especially after trading above $100,000.

At press time, Bitcoin has become the seventh most valuable asset in the world with a market cap of $2.09 trillion, surpassing Facebook and silver.

Recent analysis of Bitcoin’s performance suggests that the asset is attracting a large amount of liquidity from investors who appear to be rotating funds from other markets. Here’s why.

Rare market shift leads to Bitcoin decoupling from US bond yields
A recent report from CryptoQuant suggests that there is an ongoing decoupling between Bitcoin price and US bond yields.

Historically, Bitcoin tends to fall when bond yields rise, and vice versa. However, current data shows that the asset is still rising in tandem with 5-year, 10-year, and 30-year US Treasury yields.
This unusual correlation trend between Bitcoin and macroeconomic indicators means that investors may now view it as a store of value, providing protection during periods of quantitative tightening.

Bitcoin’s year-to-date returns outperform gold and the S&P 500
AMBCrypto has extended its analysis by comparing Bitcoin’s performance to that of gold and the S&P 500. The results reinforce the growing narrative that Bitcoin is in the lead.

According to Artemis, despite gold’s market cap of $23.185 trillion, Bitcoin’s return was 58.8%, outperforming gold’s 46.7% and the S&P 500’s 11.5%.

Data from CoinGlass further supports this view. Bitcoin spot ETFs had a positive last week, with inflows of $1.37 billion and average daily purchases of $274 million.

U.S. investors may play a key role in Bitcoin’s rise
Bitcoin’s trading reserves continue to decline, with only 2.49 million Bitcoins available across exchanges at the time of analysis.