Bitcoin and the broader crypto market now appear more violent than the 1929 U.S. stock crash, as extreme boom-and-bust cycles compress historic levels of risk into years, warns Bloomberg Intelligence strategist Mike McGlone.
Strategist Says Bitcoin and Cryptos 2026 Make 1929 Stock Market Crash Look Tame
Bloomberg Intelligence Senior Commodity Strategist Mike McGlone shared on social media platform X on Feb. 3 a comparison of bitcoin and the broader crypto market with the 1929-30 U.S. stock market collapse, contending that recent crypto price behavior exceeds one of the most severe equity downturns in history.
He wrote:
“ Bitcoin and cryptos 2025-26 are making the 1929-30 US stock market crash look tame.”
Alongside the remark, McGlone shared a Bloomberg chart titled “Cryptos Making US Stocks 1929-30 Look Like Sissy Stuff,” which normalizes performance to a common starting point. The chart contrasts the Dow Jones Industrial Average during 1929-30 with the Bloomberg Galaxy Crypto Index across 2025-26. On a normalized basis, the crypto index displays repeated advances above 20% followed by abrupt reversals, alongside drawdowns exceeding 30% within a compressed timeframe. In contrast, the Dow’s decline unfolded more gradually, with losses accumulating over months before reaching roughly 40% by late 1930. The comparison highlights volatility intensity rather than absolute price levels, illustrating how crypto markets condense extreme boom-and-bust cycles into much shorter periods.
As of Feb. 6, 2026, bitcoin trades near $65,480, marking its lowest level in 15 months and a sharp 48% retreat from its October 2025 peak of $126,000. While this “ crypto winter” mirrors historical volatility, the market’s foundation is now built on institutional pillars, including $95 billion in U.S. spot bitcoin ETFs and treasury holdings by over 170 publicly traded companies. Despite the current risk-off sentiment and daily trading volumes hitting $168 billion amidst heavy liquidations, bitcoin’s 56% market share continues to distinguish it from the broader altcoin sector, contrasting with the Dow Jones of 1929, which represented a traditional industrial base rather than a global digital hedge.
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McGlone expanded on his view in another post on Feb. 3, questioning whether 2025 marked an apex for risk-asset-driven inflation and identifying it as a central reason bitcoin could emerge as a tactical short. He outlined that bitcoin may need to prove resilience by holding above $100,000 during periods of stress, while describing the asset as both “overhyped” and the “first-born” of crypto, referencing its 2009 launch. He pointed to the existence of millions of digital tokens and mass participation through exchange-traded funds as indicators of late-cycle behavior. He also drew a parallel to internet stocks in 2000, suggesting last year may ultimately be viewed as a cyclical peak for crypto markets.
In a separate update shared on Feb. 1, the strategist outlined a 2026 base case centered on rising volatility and downside risk for bitcoin. He identified $50,000 as an initial support level, with potential extension toward $10,000 if volatility accelerates and risk assets revert. He cautioned that $100,000 may represent a cyclical ceiling for bitcoin under weakening equity conditions, framing 2026 as a reversionary phase following inflation-driven excess.
FAQ ⏰
- Why is bitcoin being compared to the 1929 stock market crash? Mike McGlone argues crypto volatility now exceeds the speed and intensity of the 1929-30 Dow collapse.
- What does the Bloomberg Galaxy Crypto Index show? It highlights repeated 20% surges and 30% drawdowns in crypto over short time spans.
- How does crypto volatility differ from the Dow’s 1929 decline? compresses extreme market cycles into far shorter windows than historic equities.
- Why is bitcoin still viewed as structurally distinct? Its fixed supply, dominant , and ETF access separate it from other digital assets.
Author: Kevin Helms
Source: Bitcoin
Reviewed By: Editorial Team
