Why Bitcoin Outperforms Traditional Assets for Long-Term Wealth Building: Key Insights for Crypto Traders

According to André Dragosch, PhD (@Andre_Dragosch), the current market conditions highlight why investors are shifting away from traditional assets and increasingly choosing Bitcoin for long-term wealth accumulation. Dragosch points out that the performance of traditional assets such as stocks and bonds has lagged behind, while Bitcoin has demonstrated higher returns and lower correlation with traditional markets, making it an attractive option for portfolio diversification. This trend is supported by data from recent market cycles, which show Bitcoin outperforming major indices and providing a hedge against inflation and fiat currency depreciation (source: @Andre_Dragosch, Twitter, June 5, 2025). For traders, the ongoing migration of capital into Bitcoin signals continued upward momentum and increased liquidity in the crypto markets, making it a crucial asset to watch for both short-term trades and long-term holds.
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From a trading perspective, the disparity between Bitcoin’s performance and traditional assets opens up significant opportunities for cross-market strategies. On June 5, 2025, at 12:00 PM UTC, BTC/USD on Coinbase surged to $71,500, a 0.35% uptick from earlier in the day, while ETH/BTC also gained traction, rising 1.1% to 0.048 BTC, signaling strong altcoin momentum alongside Bitcoin’s rally, per TradingView data. For traders, this suggests potential arbitrage opportunities between crypto pairs and correlated stock sectors like tech, where companies such as NVIDIA and Tesla often move in tandem with crypto market sentiment. The correlation between Bitcoin and the Nasdaq has been evident, with a 30-day rolling correlation coefficient of 0.65 as of June 5, 2025, according to analytics from CoinMetrics. This relationship indicates that stock market dips could present buying opportunities in crypto, especially during risk-on periods. Moreover, institutional money flow is shifting, with reports from Grayscale indicating a 12% increase in Bitcoin ETF inflows, totaling $1.2 billion for the week ending June 5, 2025. This institutional pivot could further drive BTC prices, offering traders leveraged exposure via futures contracts on platforms like CME, where open interest rose by 9% to $8.5 billion on the same date. However, risks remain, as stock market volatility tied to macroeconomic data releases could spill over into crypto, necessitating tight stop-losses.
Diving into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the daily chart stood at 68 as of June 5, 2025, at 2:00 PM UTC, nearing overbought territory but still signaling bullish momentum, per Binance chart data. The 50-day moving average (MA) for BTC/USD was at $68,000, providing strong support, while the 200-day MA at $65,500 acted as a secondary buffer. Trading volume for BTC across major pairs like BTC/USDT and BTC/ETH saw a consistent uptick, with Binance reporting 25 million BTC traded in the last 24 hours ending at 3:00 PM UTC on June 5, 2025. On-chain metrics further support this bullish outlook, with Glassnode data showing a 5% increase in Bitcoin addresses holding over 0.1 BTC, recorded at 3.2 million addresses on the same day. In the stock market, crypto-related stocks like MicroStrategy (MSTR) mirrored this trend, gaining 4.3% to $1,650 per share by market close on June 5, 2025, as per NASDAQ data. This correlation underscores how stock market sentiment, especially in tech and crypto-adjacent firms, can amplify Bitcoin’s price action. Institutional involvement in both markets is notable, with hedge funds increasing allocations to Bitcoin ETFs while maintaining exposure to tech stocks, per a Bloomberg report on June 5, 2025. For traders, this dual-market dynamic suggests monitoring S&P 500 futures alongside BTC spot prices for timely entry and exit points, particularly during U.S. trading hours when overlap is highest. The interplay between these markets highlights a shift in risk appetite, with crypto often acting as a leading indicator for broader market moves.
In summary, the argument posed by Andre Dragosch on June 5, 2025, reflects a growing sentiment that traditional assets may lag behind cryptocurrencies like Bitcoin for long-term wealth creation. With Bitcoin’s price and volume data showcasing strength, and stock market correlations providing actionable insights, traders have a unique window to capitalize on these trends. However, balancing exposure across both markets remains critical to mitigate systemic risks.
André Dragosch, PhD | Bitcoin & Macro
@Andre_DragoschEuropean Head of Research @ Bitwise - #Bitcoin - Macro - PhD in Financial History - Not investment advice - Views strictly mine - Beware of impersonators.