Bitcoin may trail AI stocks over next 5 years

Bitcoin has underperformed the broader US stock market over the past five years, gaining only about 40% compared to the S&P 500's roughly 74% rise, according to a report by The Motley Fool. The report suggests that Bitcoin could face tougher competition from AI stocks in the next five years, though it may still rise amid economic uncertainty.

A US recession or financial crisis could boost Bitcoin as a safe-haven asset, The Motley Fool notes, citing research from Charles Schwab that showed Bitcoin rose during the 2023 regional banking crisis. However, it warns that a similar reaction is not guaranteed. The limited supply of 21 million bitcoins and early-stage institutional adoption are seen as bullish factors, with Morgan Stanley's head of digital asset strategy Amy Oldenburg suggesting Bitcoin could eventually reach $1 million if a major catalyst emerges.

Investor interest is also reflected in traditional products: Morgan Stanley's Bitcoin ETF has attracted over $400 million in assets within four months of launch. The Motley Fool says this could signal growing demand, potentially supporting Bitcoin's price in the long term.