Bitcoin looks poised to outperform stocks and bonds again, according to Mark Connors, chief investment officer at Risk Dimensions. Connors — formerly global head of portfolio management at Credit Suisse — says bitcoin (BTC $74,703.02) appears to be emerging from its longest period of relative weakness versus the S&P 500: a 142-day stretch that finally 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.” That potential rotation back into crypto comes as investors contend with stubborn inflation, higher oil prices and renewed uncertainty over interest rates. In Connors’ view, those dynamics are squeezing bonds — the traditional safe-haven — as markets price in a “higher-for-longer” rate environment, leaving room for alternative stores of value to reassert themselves. “Bitcoin, as it always does, takes it on the chin early, but then it always comes out first,” Connors said, suggesting BTC could continue to beat both equities and fixed income "as we grind through the straits of poor news and oil persistently being high." Connors connects the macro picture to geopolitics and structurally elevated energy costs: sustained high oil is feeding inflationary pressure, forcing investors and companies to lean on technology and productivity improvements to offset rising input costs. He sees AI and blockchain increasingly intertwined as firms build decentralized systems to support machine-driven transactions and automation — a trend he argues is central to breaking the inflationary cycle. “The only way to punch through that inflationary pressure is through technology,” he said. He also flagged a rotation in safe-haven preferences, drawing a parallel to 2020 when gold briefly led during the early pandemic before bitcoin’s strong resurgence. “Gold has had its run,” Connors said. “Bitcoin is now on its resurgence.” Whether bitcoin sustains this outperformance will depend on how persistent inflation and energy pressures remain, and how markets react to central-bank policy and macro shocks. Still, Connors’ view adds a high-profile voice to the growing chorus of investors who see crypto reclaiming its role as a portfolio diversifier and inflation hedge in a tougher macro landscape.
Risk Dimensions CIO Predicts Bitcoin to Outperform Stocks and Bonds Amid Inflation
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Summary
Risk Dimensions CIO Mark Connors said Bitcoin’s risk-to-reward ratio is now more attractive than stocks and bonds amid ongoing inflation. He noted Bitcoin has broken out of a 142-day underperformance phase against the S&P 500, with support and resistance levels shifting in its favor. Connors tied the move to inflation, high oil prices, and a 'higher-for-longer' rate environment, which are eroding traditional safe-havens. He also pointed to AI and blockchain as tools to counter inflation and boost productivity.
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