The stock market is outperforming Bitcoin over the past year: Why this may soon change

Despite Bitcoin's strong performance against a backdrop of global turbulence in recent times, it is important to note that the stock market is still outperforming the benchmark cryptocurrency over a one-year period.

There is a strong chance that this trend will soon come to a harsh end as economic and social unrest in the US could lead equities to see further downside in the weeks ahead. This could allow Bitcoin to gain further ground against the traditional markets in the days and weeks ahead.Stock market outperforms Bitcoin over one-year period.

Despite Bitcoin's strong performance over the past three months, it has failed to garner any macro-uptrend over a year-long or multi-year long time frame.

Arcane Research spoke about this trend in a recently released report, explaining that the cryptocurrency's volatility has also far outweighed that of the stock market.

"The stock market has performed better than bitcoin over the last 12 months. In addition, the volatility has been much higher for bitcoin."

"The uncorrelated property of bitcoin is one of its main advantages as an investment. Combining a high Sharpe Ratio with being uncorrelated, bitcoin is a unique addition to every investment portfolio."

Bitcoin has just recently began trading like a safe haven asset, as it was previously showing high levels of correlation with the global markets.

Bitcoin could now benefit from future stock market declines, and the ongoing pandemic coupled with mounting social unrest in the United States could mean that intense bear-favoring volatility is imminent.

Imminent inflation induced by the widespread money printing seen throughout the past few months could further bolster the benchmark cryptocurrency, shining a spotlight in its fixed scarcity.

The confluence of these factors could put a firm end to Bitcoin's macro underperformance of the traditional markets.