Bitcoin v Stock Market in 1930s
This article discusses the similarity between bitcoin and the stock market in the 1930s, as pointed out by Mike McGlone, a senior commodity strategist for Bloomberg Intelligence. The comparison draws parallels between the warnings of economist Irving Fisher and statistician Roger Babson in the 1920s and the current state of the stock market and bitcoin. Here are the key points:
- Bitcoin is performing well and is considered a leading indicator.
- Roger Babson warned about elevated equity prices in 1929, similar to the current situation.
- The Dow Jones Industrial Average experienced a massive increase followed by a catastrophic crash in the 1930s.
- The stock market crash of 1929 contributed to the Great Depression.
- The Federal Reserve has increased interest rates to combat inflation.
It is important to note the similarities between the stock market in the 1930s and the current state of bitcoin. The warnings from Babson and Fisher should serve as a reminder to be cautious in the current market. The actions of the Federal Reserve also indicate a concern for inflation, which may impact both the stock market and bitcoin. As history has shown, booms can quickly turn into crashes, and it is essential to keep a close eye on market trends and indicators.
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