Bitcoin Outshines S&P 500 by 88% Since 2020: Buffett’s Favorite Index Left Behind

For decades, billionaire investor Warren Buffett has urged everyday investors to stick with the S&P 500, calling it the most reliable long-term wealth builder. But new data shows that even the world’s most trusted stock market index has fallen far behind Bitcoin’s meteoric performance over the past five years.

According to Phil Rosen, co-founder of the Opening Bell Daily newsletter, while the S&P 500 has gained 106% in U.S. dollar value since 2020, it has collapsed by roughly 88% when measured in Bitcoin terms. 

S&P 500 Strong Run Falls Short

The observation, shared in an October 5 X post, has fueled a wave of celebration among Bitcoin advocates who see the comparison as proof of the digital asset’s dominance.

The S&P 500, which tracks the performance of 500 leading U.S. companies, has long been the hallmark of stability and steady growth. Historically, it has delivered an average inflation-adjusted return of about 6.7% since its inception in 1957—outpacing inflation and forming the basis of Buffett’s famous 90/10 strategy: 90% in the S&P 500, 10% in short-term Treasury bonds.

Despite the S&P 500’s continued rally in 2025—reaching a record $6,715.79, up 14.4% year-to-date—it still trails behind Bitcoin, which has soared 32% this year and touched a new all-time high of $125,000 over the weekend.

Bitcoin Outpaces Traditional Markets by a Wide Margin

To put that into perspective, data from OfficialData.org shows that a $100 investment in the S&P 500 at the start of 2020 would now be worth around $209.85. The same $100 invested in Bitcoin would have grown to approximately $1,473.87, underscoring Bitcoin’s extraordinary returns compared to traditional assets.

Still, experts caution that comparing the two directly isn’t entirely fair. The S&P 500 represents a diversified index of blue-chip companies with relatively stable growth, while Bitcoin is a single, decentralized digital asset driven by scarcity, deflationary design, and global adoption as a hedge against fiat depreciation.

Bitcoin also carries higher volatility and a smaller market capitalization—around $2.47 trillion, compared to the S&P 500’s $56.7 trillion. Yet, as institutional adoption accelerates and investors seek alternatives to traditional equities, Bitcoin’s performance suggests it’s no longer just a speculative bet—it’s becoming a serious competitor to Wall Street’s most trusted benchmark.