Bitcoin is no longer a phenomenon alien to Wall Street, taking an active role in the investment portfolios and strategies of major institutional investors.
Devaluation of the S&P 500 Compared to Bitcoin
The S&P 500 hit a new record, surpassing 6,280 points. However, in relation to Bitcoin, the story is different. The index has lost 15% against Bitcoin since the start of the year, and since 2012, its drop has reached 99.98% against BTC. This highlights Bitcoin's emerging role as a key measure of value in financial markets.
CITE_NA: "We are witnessing a historic moment. Since 2012, the S&P 500 has lost 99.98% of its value against Bitcoin."
The Rise of Bitcoin ETFs and Institutional Investments
The growth of Bitcoin is supported by tangible foundations. Notably, Bitcoin ETFs now hold over 1.26 million BTC, representing 6% of the global supply. Recently, they recorded $1.17 billion in inflows, setting records for inflows. Additionally, government interest in cryptocurrencies is becoming more apparent, supporting legislation favorable to Bitcoin.
Bitcoin as a New Standard for Financial Performance Measurement
On Wall Street, many are now viewing performance in BTC terms rather than just dollars. Bitcoin is increasingly being held in corporate treasuries, signaling a shift in how financial performance is assessed. Companies are recognizing Bitcoin as a hedge against inflation and financial instability.
Bitcoin is becoming not only a measure of value but also an important indicator for institutional investors. Its role in financial markets continues to grow, transforming traditional investment approaches.
