Bloomberg Intelligence Senior Commodity Strategist Mike McGlone has issued a stark warning on social media platform X: Bitcoin and the crypto market in 2025-2026 are displaying volatility that surpasses the severity of the 1929-1930 U.S. stock market crash. He shared a Bloomberg chart comparing the Bloomberg Galaxy Crypto Index with the Dow Jones Industrial Average during 1929-30, normalized to a common starting point.
Chart Comparison: Crypto's 'Superspeed' Volatility
The chart reveals that the crypto index experienced repeated advances exceeding 20% followed by abrupt reversals, along with drawdowns of over 30% within compressed timeframes. In contrast, the Dow's decline unfolded more gradually, with losses accumulating over months before reaching roughly 40% by late 1930. McGlone wrote: "Bitcoin and cryptos 2025-26 are making the 1929-30 US stock market crash look tame." He emphasized that the speed and intensity of crypto volatility now exceed one of the most severe equity downturns in history.
Current Bitcoin Price and Market Context
As of Feb. 6, 2026, bitcoin trades near $65,480, its lowest level in 15 months and a sharp 48% retreat from the October 2025 peak of $126,000. Despite a 'crypto winter' sentiment, the market's foundation is now built on institutional pillars: $95 billion in U.S. spot bitcoin ETFs and treasury holdings by over 170 publicly traded companies. Bitcoin’s 56% market share distinguishes it from the broader altcoin sector, contrasting with the Dow Jones of 1929, which represented a traditional industrial base.
McGlone expanded that 2025 may have marked the peak for risk-asset-driven inflation, making bitcoin a potential tactical short. He argued that bitcoin needs to prove resilience by holding above $100,000 during stress, and drew parallels to the internet stock bubble of 2000, suggesting last year may be seen as a cyclical top for crypto.
2026 Outlook: Support Levels and Risk Scenarios
In a Feb. 1 update, McGlone outlined a 2026 base case of rising volatility and downside risk. 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.
While McGlone's view is bearish, the institutionalization of crypto continues. Bitcoin remains a 'digital gold' narrative, but its short-term price action demonstrates historically rare volatility intensity. Investors should be prepared for sharp swings between extreme sentiment and fundamental valuation.