Bitcoin Faces 1929 Crash Parallels As Bloomberg Strategist Warns Of Downturn

The cryptocurrency market’s aggressive rally through 2025 has collided with a steep downturn, prompting veteran market watchers to dig deep into financial history.

Echoes of Irving Fisher and the 1929 Crash

Greely highlights a public declaration made on October 16, 1929, by prominent American economist Irving Fisher, who asserted that stock prices had reached a permanently higher level and would climb even further in the coming months.

Just days later, the New York Stock Exchange imploded on October 24, 1929—an event forever etched into history as Black Thursday. That collapse initiated the Great Crash of 1929, plunging the global economy into the Great Depression, which dragged on until 1939. Fisher, who had heavily leveraged his own portfolio in equities, saw the vast majority of his personal fortune wiped out, permanently damaging his professional legacy despite his later scholarly contributions to debt-deflation theory following the 2008 financial crisis.

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The 2025 Bitcoin Peak and Wall Street Integration

McGlone’s comparison links Fisher’s misplaced optimism to the frenzy that drove bitcoin to an all-time high of over $100,000 on October 6, 2025. That monumental run was fueled by a confluence of mainstream financial adoption and political backing in the United States, including the rollout of spot bitcoin exchange-traded funds (ETFs) by Wall Street giants like BlackRock, Franklin Templeton, Morgan Stanley, and Fidelity Investments.

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At the same time, political tailwinds shifted dramatically. Donald Trump campaigned on a promise to turn the United States into a global superpower of bitcoin and floated the concept of a federal strategic bitcoin reserve. Yet, those ambitions were accompanied by extensive family business ventures in the crypto space, ranging from meme coins to World Liberty Financial initiatives. These commercial ties sparked intense ethical debates regarding potential conflicts of interest, particularly after recent disclosures revealed that Trump generated significant revenue from cryptocurrency ventures over the prior year.

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Current Market Reality and the Road Ahead

That euphoric peak has since given way to a sharp correction. For market participants hoping for a swift rebound, McGlone’s analysis offers a sobering caution, suggesting that the leading cryptocurrency has already carved out its cycle peak and is unlikely to reclaim those historic valuation levels anytime soon.