Could History Repeat Itself? Bloomberg Analysts Compare Bitcoin to the 1929 Crisis

Jakarta, Pintu News – In a recent analysis by Mike McGlone, senior macro strategist at Bloomberg Intelligence, there is a stark comparison between the Bloomberg Galaxy Crypto Index in 2025 and the Dow Jones in 1929. McGlone describes the current situation as the beginning of a cleansing phase similar to that which occurred during the Great Depression nearly a century ago, rather than a lull.

Historical Comparative Analysis

McGlone points out that the trajectory followed by the crypto market today is very similar to that experienced by the US stock market a hundred years ago. This includes a sharp rise, widespread speculation, and finally, a slow decline. According to him, this phase is usually followed by intense debates about whether or not this is a bubble, which often happens at the peak, not the bottom.

Bitcoin’s (BTC) price rise after 2024 has been described as a beach ball being forced underwater, which then shoots up after the political pressure eases following the 2024 re-election. This rapid price rise was followed by an increase in speculative appetite and an accumulation of excess that eventually had to be cleared.

Also read: Bitcoin is back in the lead, almost all crypto sectors are lagging in the last 3 months!

Warning Against Greater Risk

Although Bitcoin is only down about 5% until December 14, 2025, McGlone considers this a sign of resilience that may be hiding a greater downside risk rather than confirming safety. The comparison between Bitcoin and gold has also come under scrutiny, where the Bitcoin-to-gold ratio which rose sharply during the crypto rally, has now fallen by around 40% this year.

McGlone’s most surprising projection is the potential drop in Bitcoin price to $10,000 by 2026, which would impact other risk assets. This has been triggered by Bitcoin’s price rise to above $100,000, which he says has created the conditions for a long-term drawdown.

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Broader Implications for the Market

The decline in the Bitcoin-to-gold ratio and the potential decline in the price of Bitcoin indicates a possible squeeze on the entire risk asset. McGlone sees this as an indication that the market may move back to a ratio of 10 by 2026, which historically suppresses all risk assets.

The crypto market, which is often considered a barometer of broader risk appetite, may experience significant changes if McGlone’s predictions prove correct. This signifies the importance of constant monitoring of economic and market indicators to anticipate possible changes.

Conclusion

The comparison between the current crypto market crisis and the Great Depression of 1929 offers a valuable perspective on the potential risks that investors and the market as a whole may face. This insight from McGlone is a reminder of the importance of caution in navigating these volatile markets.

FAQ

Who is Mike McGlone?

Mike McGlone is a senior macro strategist at Bloomberg Intelligence who analyzes and provides insights on global macro markets, including crypto.

What is the Bloomberg Galaxy Crypto Index?

The Bloomberg Galaxy Crypto Index is an index that measures the overall performance of the crypto market, similar to how the Dow Jones measures the US stock market.

What is the percentage drop of Bitcoin in 2025 until December 14?

Bitcoin has decreased by about 5% until December 14, 2025.

What is Mike McGlone’s Bitcoin price projection for 2026?

Mike McGlone projects that the price of Bitcoin could drop to $10,000 by 2026.

Why is the Bitcoin-to-gold ratio important in this analysis?

The Bitcoin-to-gold ratio is important because it shows how the value of Bitcoin compares to gold, which can indicate the level of risk or stability of the market.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• U.Today. Bitcoin May Be Repeating 1929 Great Depression Top, Bloomberg Strategist Warns. Accessed on December 17, 2025
• Featured Image: Generated by AI