The senior commodity strategist at Bloomberg Mike McGlone believes that the leading cryptocurrency by market cap, Bitcoin (BTC), could be in trouble, as its price chart resembles the 1930s stock market’s chart, following the major crisis that took place in 1929.
“One of the best-performing assets in history and a leading indicator — Bitcoin — appears similar to the #stockmarket in 1930.”
— Mike McGloneOne of the best-performing assets in history and a leading indicator — #Bitcoin — appears similar to the #stockmarket in 1930. Statistician and entrepreneur Roger Babson began warning about elevated equity prices well before economist Irving Fisher proclaimed a "permanently… pic.twitter.com/kKO04h2QoR
— Mike McGlone (@mikemcglone11) August 21, 2023More specifically, McGlone also makes a comparison to Roger Babson — a well-known statistician and entrepreneur back in the days — who “began warning about elevated equity prices” before this idea was brought by Irving Fisher in 1929, who proclaimed a “permanently high plateau” in 1929.
BTC price chart since 2020. Source: Finbold
If Mike McGlone’s analysis is accurate, the leading cryptocurrency could be nearing a major drop that would surprise the vast majority of investors, like what happened in 1930.
Most Bitcoin analysts are expecting BTC’s price to start increasing soon, ahead of the block subsidy halving, which is set to happen in April 2024.
Many Bitcoin miners are already running their businesses ‘underwater’, as their current rewards are not enough to cover the costs for the activity that is responsible for securing the network and distributing new coins.
All things considered, the digital commodity’s ability to meet the above analyst’s expectations will depend on further developments related to Bitcoin, as well as the general sentiment on the wider crypto and macroeconomic landscape.
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