Mark Connors, chief investment officer at Risk Dimensions, said Bitcoin could enter a new period of outperformance against traditional assets as inflationary pressures persist and bond markets weaken.
Connors, who spent years as global head of portfolio management at Credit Suisse, said bitcoin recently emerged from its longest period of underperformance against the S&P 500 in history (142 days through early May).
“I think Bitcoin’s underperformance relative to the market is over,” Connors said in an interview. “We have moved from the consolidation stage to the outperformance stage.”
The shift comes as investors grapple with stubborn inflation, rising oil prices and uncertainty around interest rates. Connors argued that bonds, traditionally seen as defensive assets, are under increasing pressure as markets adjust to a “prolonged high interest rate” environment.
“As always, Bitcoin suffers early, but it always comes out ahead,” he said, adding that Bitcoin could continue to outperform both stocks and bonds “even through the woes of weak news and persistently high oil prices.”
Connors said much of the current macro environment is linked to persistent geopolitical tensions and rising energy prices. He said oil prices have remained structurally high this year, fueling inflation concerns while forcing markets to look to technology and productivity improvements as a countermeasure.
He argued that AI and blockchain are increasingly intertwined as companies seek decentralized systems that support machine-driven transactions and automation.
“The only way to overcome inflationary pressures is to use technology,” Connors said.
He also noted that investor preferences are shifting between gold and Bitcoin. Connors compared the current environment to 2020, when gold initially outperformed during the early stages of the pandemic, before Bitcoin began its strong comeback.
“The money is gone,” he said. “Bitcoin is now making a comeback.”
