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Stocks Have Been Quietly Crushing Crypto Since 2021, Trader Says

MarketDash Editorial Team
7 days ago
A well-known pseudonymous trader is pointing out an uncomfortable truth for crypto enthusiasts: traditional equities have been steadily outperforming digital assets for nearly half a decade. The reason? Crypto's struggle to tell a compelling story.

Here's an observation that might sting a bit if you're deep in the crypto ecosystem: stocks have been quietly winning for years now.

Pseudonymous trader Pentoshi laid out the case Thursday on X, noting that while U.S. equities keep grinding higher year after year, crypto—particularly altcoins—has been essentially trapped in the same trading range since 2021. That's a long time to go nowhere, and it speaks to something bigger than just market cycles.

The Narrative Problem

According to Pentoshi, the real issue is that crypto "lacks narrative." While sectors like artificial intelligence, medicine, and robotics deliver tangible products and cohesive stories that attract capital, crypto's storylines remain fragmented and hard to pin down. These aren't just competing investment themes—they're existential threats to crypto's ability to capture investor attention.

Trader Guy chimed in with another angle: stocks benefit from established valuation frameworks, while crypto investors are only now figuring out how to properly price risk and fundamentals. In other words, value discovery in digital assets has become remarkably difficult.

The Comparison Trap

Pentoshi also tackled a common crypto talking point: comparing Bitcoin (BTC) to the entire S&P 500. Sure, Bitcoin is up 20x from the COVID lows while the S&P 500 has risen just 3x. But that comparison misses the point—plenty of individual stocks within the index have delivered their own 20x-plus returns without the same volatility.

Trader Ted Pillows added that while Bitcoin and Ethereum have bounced recently, both remain well below their all-time highs. Meanwhile, the S&P 500 and gold are pushing toward new records. If that performance gap doesn't close soon, he warned, crypto's broader investment appeal could take a serious hit.

Pentoshi's conclusion? The next decade will bring massive innovation across multiple sectors, and staying married to crypto alone means missing out. He's advocating for diversification and objectivity—recognizing that stocks and crypto can complement each other rather than compete.

Back to News

Stocks Have Been Quietly Crushing Crypto Since 2021, Trader Says

MarketDash Editorial Team
7 days ago
A well-known pseudonymous trader is pointing out an uncomfortable truth for crypto enthusiasts: traditional equities have been steadily outperforming digital assets for nearly half a decade. The reason? Crypto's struggle to tell a compelling story.

Here's an observation that might sting a bit if you're deep in the crypto ecosystem: stocks have been quietly winning for years now.

Pseudonymous trader Pentoshi laid out the case Thursday on X, noting that while U.S. equities keep grinding higher year after year, crypto—particularly altcoins—has been essentially trapped in the same trading range since 2021. That's a long time to go nowhere, and it speaks to something bigger than just market cycles.

The Narrative Problem

According to Pentoshi, the real issue is that crypto "lacks narrative." While sectors like artificial intelligence, medicine, and robotics deliver tangible products and cohesive stories that attract capital, crypto's storylines remain fragmented and hard to pin down. These aren't just competing investment themes—they're existential threats to crypto's ability to capture investor attention.

Trader Guy chimed in with another angle: stocks benefit from established valuation frameworks, while crypto investors are only now figuring out how to properly price risk and fundamentals. In other words, value discovery in digital assets has become remarkably difficult.

The Comparison Trap

Pentoshi also tackled a common crypto talking point: comparing Bitcoin (BTC) to the entire S&P 500. Sure, Bitcoin is up 20x from the COVID lows while the S&P 500 has risen just 3x. But that comparison misses the point—plenty of individual stocks within the index have delivered their own 20x-plus returns without the same volatility.

Trader Ted Pillows added that while Bitcoin and Ethereum have bounced recently, both remain well below their all-time highs. Meanwhile, the S&P 500 and gold are pushing toward new records. If that performance gap doesn't close soon, he warned, crypto's broader investment appeal could take a serious hit.

Pentoshi's conclusion? The next decade will bring massive innovation across multiple sectors, and staying married to crypto alone means missing out. He's advocating for diversification and objectivity—recognizing that stocks and crypto can complement each other rather than compete.