Bitcoin looks poised to outperform stocks and bonds again after lagging behind Wall Street

Bitcoin may be entering a fresh phase of outperformance relative to traditional assets as inflation remains persistent and bond markets show signs of weakness, according to Risk Dimensions CIO Mark Connors.

Connors, a former global head of portfolio management at Credit Suisse, noted that bitcoin recently broke out of its longest-ever stretch of underperformance against the S&P 500—a 142-day period that concluded in early May. He believes this marks a turning point for the asset.

“Bitcoin’s lag versus broader markets appears to be behind us,” Connors said, adding that what had been a consolidation phase is now transitioning into a period of relative strength.

The shift comes amid ongoing macroeconomic pressures, including stubborn inflation, elevated oil prices, and continued uncertainty around interest rate policy. Connors argued that bonds—traditionally seen as a safe haven—are increasingly vulnerable in a prolonged high-rate environment.

“Bitcoin tends to absorb the initial shock, but it’s often the first to recover and move higher,” he said, suggesting the asset could outperform both equities and fixed income as markets navigate persistent negative headlines and sustained energy costs.

He linked the current backdrop to geopolitical tensions and structurally high oil prices, which continue to fuel inflation concerns. In this environment, Connors emphasized the growing importance of technological innovation as a counterbalance.

According to him, advancements in artificial intelligence and blockchain are becoming increasingly interconnected, particularly as companies explore decentralized infrastructure to support automated, machine-driven systems.

“Technology is the key lever to push through inflationary pressure,” Connors said.

He also highlighted shifting investor sentiment between gold and bitcoin, drawing parallels to 2020. During that period, gold initially outperformed amid pandemic uncertainty before bitcoin staged a strong rally.

“Gold has already seen its moment,” Connors said. “Now, bitcoin is entering its next phase of resurgence.”