S&P 500 return over last 5 years before dividends: +80% (closer to 90% counting dividends).
BTC total return over last 5 years: +62%.
In fact, BTC has even underperformed the conservative Dow Jones over the last 5 years now.
This is the first time it has underperformed the S&P 500 over a 5 year period. Each cycle produces worse risk-adjusted returns as the new ATH becomes a smaller multiple of the old ATH, yet the drops remain nearly as large as before.
2012 – 2013: ~600x returns followed by -87% decline
2015-2017: ~125x returns followed by -84% decline
2018-2021: ~22x returns followed by -77% decline
2023-2025: ~8x returns followed by -50% decline (so far)
Or expressed as multiples of the prior ATH:
2017 high was 17x 2013 high
2021 high was 3.5x 2017 high
2025 high was 1.8x 2021 high
The current bear market in crypto should not surprise or worry anyone, as it’s right on time given crypto’s history. What should worry folks is that the magnitude of the rallies in between bear markets are shrinking much faster than the magnitude of the bear market drawdowns. This pattern indicates that BTC has become a much worse investment from a risk/reward perspective.
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