Bitcoin looks set to outpace stocks and bonds again, according to Mark Connors, chief investment officer at Risk Dimensions — a shift he links to persistent inflation, high oil prices and weakening bond markets. BTC was trading around $74,703 at the time Connors made the comments. Connors, who previously served as global head of portfolio management at Credit Suisse, says bitcoin recently snapped a 142-day stretch of underperformance versus the S&P 500 — the longest such period on record — a streak that ended in early May. “I think bitcoin’s underperformance versus markets is over,” he told reporters. “It’s in the consolidation phase [that] has shifted into an outperformance phase.” His view is rooted in the current macro backdrop: stubborn inflation, a “higher-for-longer” interest-rate narrative and oil prices that have stayed structurally high this year. Those forces, Connors argues, are pressuring bonds — traditionally a defensive asset — and forcing investors to seek different sources of return. “Bitcoin, as it always does, takes it on the chin early, but then it always comes out first,” he said, adding that bitcoin could continue to outperform both equities and fixed income “as we grind through the straits of poor news and oil persistently being high.” Connors also pointed to structural drivers underpinning his bullish stance. Persistent geopolitical tensions and elevated energy costs, he said, are accelerating a shift toward technology and productivity gains. He highlighted growing links between AI and blockchain as businesses look for decentralized systems to support machine-driven transactions and automation: “The only way to punch through that inflationary pressure is through technology.” On investor flows, Connors drew a parallel to 2020: gold initially outperformed during the early pandemic shock, then bitcoin staged a strong resurgence. “Gold has had its run,” he said. “Bitcoin is now on its resurgence.” Taken together, Connors’ thesis is that as traditional defensive playbooks fray — particularly in a high-rate, high-oil environment — crypto assets like bitcoin may reassert themselves as a leading source of returns.
Bitcoin Poised to Outperform Stocks and Bonds Amid Inflation, High Oil Prices
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Summary
Bitcoin is gaining traction as an inflation hedge, with the fear and greed index showing growing bullish sentiment. Mark Connors of Risk Dimensions said BTC is set to outperform stocks and bonds amid high oil prices and a weak bond market. BTC traded near $74,703 as it ended a 142-day underperformance streak against the S&P 500. Connors cited macro pressures and geopolitical tensions as key drivers. He also mentioned altcoins to watch are gaining attention due to AI and blockchain links.
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