Crypto Volatility Exceeds Great Depression Extremes, Bloomberg Analyst Warns

The recent behavior of Bitcoin (BTC) and the rest of the cryptocurrency market is prompting unusually stark historical comparisons, including those by Bloomberg Intelligence strategist Mike McGlone.

Specifically, according to McGlone, crypto market swings in 2025-26 are rivaling, and in some cases exceeding, the volatility seen during the 1929-30 U.S. stock market collapse, as he observed in the analysis shared in an X post on February 3.

What The Comparison Is Showing

McGlone highlights normalized charts comparing the Bloomberg Galaxy Crypto Index with the Dow Jones Industrial Average during 1929-30. On a relative basis, crypto industry drawdowns and rebounds appear sharper and faster than those seen during the early stages of the Great Depression.

The takeaway is that risk compression and release in crypto is happening at a scale rarely seen in traditional markets. Crypto’s 24/7 structure, leverage, and reflexive speculation amplify moves that once took years into months.

McGlone also points to bond-market dynamics. In a separate chart, he suggests that falling Bitcoin prices have historically aligned with declining long-term Treasury yields, reinforcing crypto’s role as a high-beta liquidity indicator rather than a defensive hedge.

Meanwhile, BTC was at press time trading at the price of $76,069, down 2.6% on the day, losing 14.8% across the week, and dipping 18.3% over the past month, according to the most recent chart information.

Why McGlone Sees Bitcoin At A Crossroads

McGlone frames 2025 as a potential apex for risk-asset-driven inflation, with Bitcoin acting as a pressure valve. He argues Bitcoin may need to “prove strength” by holding above psychologically important levels rather than relying on perpetual inflows from exchange-traded funds (ETFs) and speculative demand.

He also notes a structural shift. Bitcoin was once the “first-born” digital asset with limited competition. Today, millions of tokens exist, ETFs have pulled in retail at scale, and speculative access is easier than ever, which are the conditions that historically appear near market peaks.

That raises the bar for what resilience looks like for Bitcoin in this phase of the cycle. Whether this period marks a generational reset or simply another violent transition remains open. What’s clear is that crypto volatility is no longer being measured against its own past, but financial history’s most extreme moments.

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