Having fallen behind Wall Street, Bitcoin is now set to beat stocks and bonds again.

Bitcoin may be poised to regain leadership over traditional asset classes as inflation remains sticky and bond markets continue to weaken, according to Risk Dimensions chief investment officer Mark Connors.

Connors, a former global head of portfolio management at Credit Suisse, said bitcoin has recently broken out of its longest period of underperformance against the S&P 500—a 142-day stretch that ended in early May—marking a potential turning point for the asset.

He noted that bitcoin appears to be moving out of a consolidation phase and into a new period of relative strength, suggesting its lag behind equities may now be over.

The shift is taking place amid persistent macroeconomic challenges, including elevated inflation, rising oil prices, and ongoing uncertainty around interest rate policy. Connors argued that bonds, typically seen as safe-haven investments, are under growing pressure in a prolonged higher-rate environment.

“Bitcoin tends to take the initial hit during market stress, but it’s usually the first to rebound,” he said, adding that the asset could outperform both equities and fixed income as markets work through continued economic headwinds and sustained high energy costs.

Connors also linked the current environment to geopolitical tensions and structurally high oil prices, which are keeping inflation concerns elevated. In response, he emphasized the critical role of technology in countering these pressures.

He pointed to the increasing convergence of artificial intelligence and blockchain, as companies adopt decentralized systems to enable automation and machine-driven processes.

“Technology is the key to breaking through inflationary pressure,” Connors said.

He also highlighted a shift in investor sentiment between gold and bitcoin, drawing comparisons to 2020 when gold initially outperformed before bitcoin surged. Connors believes a similar pattern may be unfolding again.

“Gold has already had its move,” he said. “Bitcoin is now entering a new phase of resurgence.”