Bitcoin vs S&P 500: Buffett’s Favorite Index Falls 88%
Warren Buffett’s S&P 500 trails Bitcoin by 88%
Billionaire investor Warren Buffett has long praised the S&P 500 as a reliable long-term investment. But new data shows that the index has underperformed Bitcoin by around 88% since 2020, revealing a striking gap in returns between traditional stocks and crypto assets.
According to an Oct. 5 post by Phil Rosen, co-founder of Opening Bell Daily, the S&P 500 has surged 106% in USD terms since 2020. Yet when measured in Bitcoin, it has “collapsed,” sparking excitement among Bitcoin supporters.
The Standard and Poor’s 500 tracks the performance of 500 major U.S. companies and has been a cornerstone of American investing since 1957. Historically, it delivers about 6.68% annual inflation-adjusted returns, often outpacing U.S. inflation rates.
Warren Buffett’s well-known 90/10 investment strategy – allocating 90% to the S&P 500 and 10% to short-term Treasury bonds – is built on the index’s stability and steady returns.
S&P 500 performance vs Bitcoin surge
The S&P 500 has reached new highs in 2025, now standing at $6,715.79, up 14.43% since the start of the year.
But Bitcoin continues to outperform. The leading cryptocurrency is up 32% in 2025, reaching a record $125,000 for the first time on Saturday.
Data from OfficialData.org shows that a $100 investment in the S&P 500 at the start of 2020 would now be worth $209.85. The same amount in Bitcoin would have grown to $1,473.87, underscoring the wide performance gap between the two assets.
Comparing Bitcoin and the S&P 500
While the Bitcoin vs S&P 500 performance comparison highlights massive gains for crypto, the two investments serve different purposes.
The S&P 500 is a diversified market benchmark, representing the 500 largest publicly traded U.S. companies. It offers lower risk and steady returns, ideal for long-term investors seeking predictable growth.
Bitcoin, meanwhile, is a digital asset driven by scarcity, decentralization, and deflationary principles. Its high volatility and smaller $2.47 trillion market cap make it riskier, but also potentially more rewarding, compared to the S&P 500’s $56.7 trillion valuation.
As investors continue to weigh traditional stability against digital innovation, the long-term Bitcoin vs S&P 500 performance debate is far from over.
