Bitcoin could be on the verge of a renewed period of outperformance against traditional financial assets as inflation remains elevated and bond markets come under strain, according to Risk Dimensions CIO Mark Connors.
A former global head of portfolio management at Credit Suisse, Connors pointed out that bitcoin has recently exited its longest-ever stretch of underperformance versus the S&P 500—a 142-day period that ended in early May—signaling a potential shift in momentum.
Connors said the asset appears to be moving beyond a consolidation phase and into a new cycle of relative strength. In his view, bitcoin’s lagging performance compared to broader markets has likely run its course.
The evolving outlook comes as investors continue to navigate persistent inflation, rising oil prices, and uncertainty surrounding the future path of interest rates. Connors noted that bonds, long considered a defensive allocation, are increasingly challenged in a “higher-for-longer” rate environment.
He added that while bitcoin often reacts negatively in the early stages of market stress, it has historically been among the first assets to recover, positioning it to potentially outperform both equities and fixed income amid ongoing macroeconomic headwinds.
Connors also linked current market dynamics to sustained geopolitical tensions and structurally high energy prices, which continue to reinforce inflationary pressures. In this context, he emphasized the role of innovation, arguing that technological advancements are essential to offset these challenges.
He highlighted a growing convergence between artificial intelligence and blockchain, as companies explore decentralized solutions to support automation and machine-driven economic activity.
“Technology remains the key to overcoming inflationary forces,” Connors said.
Additionally, Connors pointed to a shift in investor preference between gold and bitcoin, drawing comparisons to the early stages of the pandemic in 2020. At that time, gold initially led before bitcoin surged.
“Gold has already had its cycle,” he said. “Bitcoin now appears to be entering a new phase of resurgence.”
