Bitcoin Has Never Underperformed Stocks Over a Four-Year Period — Willy Woo

• In September, bitcoin rose by about 7%, while the S&P 500 was largely unchanged, and gold fell by more than 6%, Santiment noted.
• Willy Woo said that bitcoin has never underperformed stocks over a four-year investment horizon.

Bitcoin was the best-performing asset across both the crypto and traditional markets in September. Over the month, the leading cryptocurrency rose by about 7%, while the S&P 500 was largely unchanged, and gold lost more than 6%, Santiment noted.

A significant portion of the altcoin market also joined the rebound. According to the experts, capital has started flowing back into the crypto sector.

One of the factors supporting the rally was fresh capital inflows. US spot bitcoin ETFs pulled in billions of dollars throughout September, including several large inflows toward the end of the month. Meanwhile, Strategy added another 1,665 BTC to its bitcoin reserves.

Macroeconomic Conditions Supported the Crypto Market

According to Santiment, the macro backdrop also improved. August inflation came in below expectations, temporarily pushing Treasury yields lower and easing expectations of another US Federal Reserve rate hike.

The stock market reacted cautiously, while the crypto market posted stronger gains. Santiment attributes this to a rebound after a period of weak sentiment and a significant amount of short positioning.

In the analysts’ view, the crypto market is entering the fourth quarter with stronger momentum than stocks or gold. Among the supportive factors, they cite demand for bitcoin ETFs, corporate bitcoin accumulation, improved regulatory clarity, and renewed interest in altcoins.

At the same time, rising bond yields and excessive leverage could trigger sharp pullbacks, the experts added.

Willy Woo Compared Bitcoin With Stocks

On-chain analyst Willy Woo drew attention to Bitcoin’s performance over a longer investment horizon.

“A little-known fact: bitcoin has never underperformed stocks over a four-year investment horizon. Even if you bought at the very top,” he said.

According to Woo, bitcoin’s compound annual growth rate (CAGR) is 42%. By comparison, Renaissance Technologies, which he called the champion among hedge funds, delivered 39% for investors.

Notably, in the crypto community, October is traditionally dubbed Uptober, and many expect bitcoin to rise. Read more about it in the article.

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