Benzinga - Bloomberg analyst Mike McGlone drew parallels between Bitcoin's (CRYPTO: BTC) current trajectory and the stock market crash of 1930.
In a series of tweets, McGlone highlighted the similarities between the two, suggesting that Bitcoin's performance might be echoing the patterns of one of the most significant financial downturns in history.
McGlone referenced statistician and entrepreneur Roger Babson, who had cautioned about soaring equity prices well before economist Irving Fisher's infamous 1929 declaration of a "permanently high plateau."
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McGlone's analysis suggests that the Federal Reserve's current stance aligns more with Babson's warnings.
The Bullish Side: Technological Advancements And The Federal Reserve's Role Despite the cautionary tone, McGlone also highlighted some bullish aspects.
He drew attention to the revolutionary technologies of the era, parabolic price movements, and rampant speculation, all of which Bitcoin shares with the stock market as it approaches its 1929 zenith.
However, a notable distinction exists: the Federal Reserve Bank of New York began slashing rates in the fourth quarter of 1929 in response to plummeting equity prices, a move contrasting with today's scenario.
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