**What’s Driving The Surge In Bitcoin Prices Against The S&P 500 Index?**

According to reports, according to data shared on March 22 by CryptoManiaks, a crypto education platform, the price of Bitcoin has increased by 37.06% since March 10, and has increased by more than 72% since this year. However, there are 488 or 97.6% S&P 500 index companies with a year to date (YTD) return, including FedEx, Apple, and Amazon. In contrast, only 12 companies in the S&P 500 index have YTD returns above 35%.

Bitcoin has outperformed 97% of S&P 500 index stocks this year

**Introduction**

Since the onset of the global pandemic, the financial industry has been anything but predictable. Stock markets have fluctuated, while cryptocurrency prices, particularly Bitcoin, have experienced a steady surge. According to data shared on March 22 by CryptoManiaks, a popular crypto education platform, the price of Bitcoin has increased by 37.06% since March 10th, and more than 72% since the start of the year. However, this success in the crypto industry is starkly different from the performance of S&P 500 Index companies. With just 12 companies having a return on investment above 35%, Bitcoin’s comparatively quick rise only highlights the difficulty of traditional investment options.

**The Rise of Bitcoin**

It is no secret that Bitcoin has been on a steady incline this year, hitting new heights as institutional investors have started investing huge amounts of money in this digital currency. The stability of Bitcoin is what attracts the new investors to invest their money in it. At the same time, Bitcoin transaction times have started taking less time, making it more efficient than ever. The ease of transactions and the high level of security offered by the cryptocurrency only add to its already growing popularity. The increased demand has further driven the price up for Bitcoin.

**The Plight of the S&P 500 Index**

The S&P 500 Index consists of the top 500 companies in the US stock market, and it has also experienced fluctuations from the pandemic. However, the YTD return of the S&P 500 Index has been stuck below that of the 35% threshold. In contrast, only 12 of the S&P 500 companies show returns over 35%, highlighting the difficulty of achieving such returns through traditional investment options.

**Why Is Bitcoin Doing So Well?**

One of the main factors contributing to Bitcoin’s success is the investment from large financial institutions. PayPal, Tesla, and MasterCard are among some of the corporations investing in Bitcoin. Hence, as major financial institutions invest in Bitcoin, more and more investors are starting to see it in a positive light. The limited supply of Bitcoin is also a factor in its success, with only 21 million tokens mined, the attractiveness of the token as a store of value is driving up demand.

**Comparing The Two**

The comparison between Bitcoin and the S&P 500 Index is not straightforward. One of the key differences between the two is the maturity of the investment options. While stock markets have existed for a long time, cryptocurrencies are still relatively new. Furthermore, the cryptocurrency market is still vulnerable to fluctuations and is subject to greater regulatory challenges. As such, comparing the two investment methods is challenging and the key take away is that Bitcoin, despite its volatility, is proving to be a successful investment method for many.

**Conclusion**

The growth in the cryptocurrency market, particularly Bitcoin, shows no sign of slowing down, and the recent investments by financial institutions only serve to strengthen this belief. However, while Bitcoin continues to surge, traditional investment options, as represented by the S&P 500 Index, struggle to keep up. Hence, investors need to keep an open mind and evaluate new opportunities continuously.

**FAQs**

**Q1**: Is Bitcoin a safe investment option?
A1: Like any investment option, Bitcoin comes with its share of risks. Hence, investors must exercise caution and perform extensive due diligence before making any investments.
**Q2**: Why is the S&P 500 Index struggling to produce returns this year?
A2: The S&P 500 Index is struggling to produce returns because of the pandemic’s impact, which has resulted in widespread economic uncertainty.
**Q3**: How does one invest in cryptocurrencies like Bitcoin?
A3: To invest in Bitcoin, investors must look for genuine exchanges that offer crypto trading services. Before investing, it is also important to conduct thorough research into the cryptocurrency market to make informed decisions.