Crypto markets are showing stress signals that some analysts compare to the conditions leading up to the 1929 crash. Bloomberg Intelligence strategist Mike McGlone argues that recent crypto performance mirrors late-1920s U.S. equities, warning that stretched valuations and tight correlations with risk assets could precede a sharper downturn rather than a soft landing.
He points to factors like weak relative pricing of U.S. Treasuries versus gold, elevated stock market cap-to-GDP levels, and bitcoin’s price behavior as signs of a fragile macro setup. McGlone suggests bitcoin could act as a key catalyst if broader risk assets roll over, especially after its struggle to outperform Treasuries amid high yields.
Despite the cautious outlook, broader data still shows continued institutional adoption of bitcoin, steady inflows into regulated spot products, and resilient network fundamentals, supporting the view of bitcoin as a long-term, non-sovereign asset even as short-term market risks rise.$BTC
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