By Key points
- Bitcoin/S&P 500 ratio hits record high of 17.725
- BTC outperforms Nasdaq over 10+ timeframes
- Institutional inflows drive BTC’s rising dominance
- Traditional market jitters push investors toward Bitcoin
Bitcoin just hit another milestone—but not in dollar price.
The Bitcoin S&P 500 ratio reached a record-breaking 17.725, indicating that Bitcoin’s value is now over 17 times higher than the average of the top 500 US stocks. This shift underscores a deeper market trend: crypto is gaining ground against traditional equities.
🚨 All-Time High: Bitcoin/S&P 500 Ratio https://t.co/MnmHG2R4GH pic.twitter.com/pX0VVAQtD3
— matthew sigel, recovering CFA (@matthew_sigel) May 8, 2025
Matthew Sigel, head of digital asset research at VanEck, highlighted this historic outperformance, stating, “All-time high: Bitcoin/S&P 500 Ratio.” Bitcoin hasn’t just edged out the S&P; it’s crushed the Nasdaq too, outperforming it across all timeframes—daily, weekly, monthly, and yearly.
This reflects a larger shift in investor behavior, especially as Bitcoin becomes more integrated into the portfolios of large institutions. As traditional finance (TradFi) wavers amid inflation and geopolitical tension, Bitcoin is becoming the go-to hedge for smart money.
Recent data from The Kobeissi Letter shows strong inflows into U.S. equities and Treasury funds since 2020—around $2.5 trillion. But this rising tide hasn’t lifted all boats equally. U.S. equity funds experienced a $100 billion net outflow during the 2022 bear market. Bitcoin, on the other hand, remained resilient.
Inflows into US assets since 2020. Source: The Kobeissi Letter – Techtoken
Institutional Liquidity Shifts the Narrative
Historically, Bitcoin’s price moves were often tied to halving cycles and retail speculation. But that story is changing.
According to CryptoQuant CEO Ki Young Ju, “It’s more important to focus on how much new liquidity is coming from institutions and ETFs.” This comment aligns with growing consensus that institutional adoption is rewriting Bitcoin’s market dynamics.
Two months ago, I said the bull cycle was over, but I was wrong. #Bitcoin selling pressure is easing, and massive inflows are coming through ETFs.
In the past, the Bitcoin market was pretty simple. The main players were old whales, miners, and new retail investors, basically… pic.twitter.com/oN4n6vNc0s
— Ki Young Ju (@ki_young_ju) May 9, 2025
Bitcoin is no longer the fringe asset it once was. It’s a serious contender for long-term capital allocation, especially for firms looking to diversify beyond bonds and inflation-prone fiat assets.
Rising U.S. Treasury yields, reaching 4.641% in January 2025, have also reduced the appeal of bonds. This shift is pushing capital into alternative assets like Bitcoin. The Bitcoin S&P 500 ratio’s record is a sign of investor preference moving away from centralized control toward decentralized, inflation-resistant systems.
BTC/S&P 500 ratio hits an all-time high of 17.7251 in 2025. Source: Mathew Sigel on X – Techtoken
This transition mirrors other major market stories too. For example, XRP recently closed its long-running SEC battle, bringing a $75M win for Ripple investors (full story here). Legal clarity like this has boosted investor confidence across the crypto sector.
Bitcoin’s Dominance Isn’t Just Price—It’s Perception
Bitcoin’s dominance isn’t only financial—it’s psychological. Investors are beginning to trust crypto over traditional markets.
Sigel notes that Bitcoin has outperformed the Nasdaq over 1 day, 1 week, 1 month, year-to-date, 1 year, 2 years, 3 years, 5 years, and 10 years. That’s not coincidence. It’s a new reality where Bitcoin is being seen as a safer, long-term bet.
Meanwhile, the ratio’s surge coincides with Bitcoin briefly surpassing Google in market cap, reflecting growing market cap dominance. You can read about that in our Bitcoin dominance report.
It’s also important to watch how other tokens behave. A recent Virtual Token spiked over 300%, but 93% is whale-controlled—showing that not all growth is sustainable or decentralized.
Elsewhere in the crypto world, the Pi Network made headlines for ranking 6th among Finland’s top social apps. It’s a reminder that community-focused tokens still matter in the broader ecosystem.
And politics aren’t far behind either. The Trump XRP scandal is shaking things up, reminding us how deeply crypto is now woven into the financial and political fabric of the U.S.
Bitcoin’s new ratio record shows that the market’s mindset is evolving. Crypto isn’t just an asset anymore—it’s becoming the benchmark.
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