Billionaire Warren Buffett’s S&P 500 investment strategy has underperformed Bitcoin by 88% since 2020, with the index collapsing in BTC denomination. The S&P 500 has surged 106% in USD value but has dropped significantly in BTC value, prompting cheers from Bitcoin supporters.

The S&P 500 index tracks 500 leading companies in the US, delivering an annual inflation-adjusted return of 6.68% since 1957. Warren Buffett has recommended the S&P 500 as a good investment option for the average investor, supporting a 90/10 investment strategy with 90% in the index and 10% in US Treasury bonds.

In 2025, the S&P 500 hit $6,715.79, rising 14.43% since the start of the year. Bitcoin also rose by 32% to $125,000, outperforming the S&P 500. Investing $100 in the S&P 500 since 2020 would yield $209.85 by July 2025, while the same investment in Bitcoin would be worth $1,473.87.

The S&P 500 and Bitcoin are different investments, with the former representing the US stock market’s performance and the latter being a digital asset with unique narratives. Bitcoin’s scarcity, decentralization, and deflation have driven its adoption as investors seek alternative ways to grow or preserve wealth. Bitcoin also has more volatility and a smaller market cap compared to the S&P 500.

Read more at Cointelegraph: S&P 500 Is Up 106% Since 2020, But Has Collapsed Against Bitcoin