Bitcoin Beats S&P 500 for 14 Straight Years: A Case for HODLing

According to data compiled by Cointelegraph, Bitcoin has consistently outperformed the S&P 500 index every year over the past 14 years, frequently surpassing the traditional safe-haven asset gold as well. As the flagship cryptocurrency, BTC continues to demonstrate its potential as a long-term investment, further solidifying its value proposition as "digital gold."

Breaking down the numbers, over the past year (as of April 2025), Bitcoin recorded a return of +27%, compared to the S&P 500's +5% and gold's +37%. However, Bitcoin's edge becomes more pronounced over longer timeframes. For instance, over the past five years, Bitcoin's cumulative return reached +1,138%, dwarfing the S&P 500's +92% and gold's +85%. Most strikingly, over the past 14 years, Bitcoin's cumulative return soared to an astounding +7,200 million%, while the S&P 500 and gold managed only +306% and +116%, respectively. These figures highlight Bitcoin's exceptional return potential and its distinct position among asset classes.

Bitcoin's journey, however, has not been without turbulence. During the 2022 crypto bear market, Bitcoin's price plummeted to a low of $16,000, a nearly 77% drop from its November 2021 all-time high of $69,000. Yet, its ability to recover swiftly has been a key draw for investors. The 14-year data reinforces that, despite short-term volatility, a long-term HODLing strategy with Bitcoin often yields significant gains.

Bitcoin's ability to consistently outpace the S&P 500 stems from its unique economic model and market dynamics. First, Bitcoin's capped supply of 21 million coins creates scarcity, driving exponential price growth as demand rises. Second, Bitcoin's halving events—occurring roughly every four years—are widely regarded as catalysts for price increases. For example, the fourth halving in 2024 reduced the block reward from 6.25 BTC to 3.125 BTC, further tightening the supply of new Bitcoins and fueling bullish market sentiment.

Additionally, Bitcoin's decentralized network and global accessibility have bolstered its long-term growth. According to Glassnode, as of March 2025, Bitcoin's network boasted 800,000 active addresses, with peaks exceeding 1.2 million, reflecting a steadily expanding user base.

Bitcoin is now experiencing a wave of mainstream adoption. In 2024, the U.S. Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs, attracting billions of dollars in institutional inflows and propelling Bitcoin's price upward. Countries and regions like Canada and Hong Kong have also rolled out crypto-related ETFs, driving market adoption globally. Moreover, as global regulatory frameworks for Bitcoin become clearer, more nations are exploring its integration into mainstream financial systems. In 2025, with Donald Trump's return to the White House and his crypto-friendly policy pledges coming to fruition, Bitcoin is increasingly being considered for strategic reserves in the U.S. and beyond. Major corporations, such as Strategy, have also launched Bitcoin investment initiatives, aggressively acquiring Bitcoin.

For long-term investors, Bitcoin's 14-year streak of outperforming the S&P 500 undoubtedly strengthens its appeal. However, caution remains essential in crypto investing, and chasing highs should be avoided. At its current price level, whether Bitcoin can sustain its historical performance will depend on macroeconomic trends and market sentiment.

A reminder to all: this article is intended for market analysis purposes only and does not constitute any investment advice. Please exercise caution and conduct thorough research before making any decisions.