Bitcoin vs the S&P 500: The Real Numbers

By Warren Sharpe··4 min read

Bitcoin is the most polarizing asset class in history. Supporters call it digital gold. Critics call it a speculative bubble. We're not here to pick sides. We just ran the numbers.

The comparison

$1,000 invested in Bitcoin vs the S&P 500, from our earliest available data:

Bitcoin's total returns dwarf the stock market over similar periods. But that headline number hides extreme volatility.

The drawdowns

Bitcoin has dropped 50%+ from peak to trough multiple times:

  • 2014-2015: -85% (Mt. Gox collapse)
  • 2017-2018: -84% (ICO bust)
  • 2021-2022: -77% (crypto winter, FTX collapse)

The S&P 500's worst drawdown in the same period was about 34% (COVID crash in 2020), and it recovered in five months. Bitcoin's crashes lasted 1-3 years each.

Starting point matters

From 2020, Bitcoin returned about 632%, while the S&P 500 returned about 129%. From 2023, Bitcoin is up about 196% vs the S&P 500 at 73%.

See the full head-to-head on our Bitcoin vs S&P 500 comparison page.

The bottom line

Bitcoin has produced higher returns than the stock market over most measured periods. It has also produced far more volatility, steeper drawdowns, and more sleepless nights. Whether the extra return is worth the extra risk is a personal decision.

* Bitcoin price data on our site begins in 2014, when Yahoo Finance started tracking it. Earlier trading history from other exchanges is not included.

For informational and educational purposes only. Not financial advice. Past performance does not guarantee future results. All calculations are based on split-adjusted closing prices from Yahoo Finance and do not account for dividends, taxes, or trading fees.