Bitcoin Surges as Risk-On Sentiment Gains momentum
This week, Bitcoin and US stocks soared as investors grew optimistic about upcoming US-China trade talks in Switzerland. Bitcoin reached $104,000, a level not seen in months. Meanwhile, the Dow Jones Index hit $41,360, its highest since April 3.
These gains suggest that both stock and crypto markets may be entering a bull phase. Trade tensions are easing,and there’s a growing chance of interest rate cuts.
Dow Jones vs Bitcoin: Why BTC Has the Edge
The Dow Jones, established in 1896, tracks 30 major US companies like NVIDIA and Microsoft. It has grown by 92,800% since its inception.Despite its stability, Bitcoin has outperformed it.
Since 2009, Bitcoin has risen by 11.4 billion percent. This year alone, it’s up 10%, while the Dow is down 2.78%. Over five years, Bitcoin has climbed nearly 1,000%, compared to the Dow’s 73%.
Why Bitcoin Outperforms Stocks
Bitcoin’s success stems from its fixed supply of 21 million coins. This scarcity makes it a better store of value than the US dollar, which can be printed endlessly.
For years, retail investors drove Bitcoin’s demand. Now, institutions are joining in. Companies like Strategy hold over 2% of Bitcoin’s supply. Coinbase, Tesla, and Block have also invested.
With over 19.82 million coins mined and exchange supply at a five-year low, Bitcoin’s scarcity is increasing. This, coupled with rising demand, could push prices higher in the long run.
