According to one analyst – BeInCrypto – volatility in the stock markets is the same as in 1929


Many are celebrating recent advances in the stock market and see this as evidence of a recovery. However, an analyst calls it a bluff and argues that this was exactly what happened in 1929.

If we use history as a guide, shocks and depression rarely occur all at once. Instead, it takes time; There is a lot of volatility as the market tends to bottom, which often leads to massive volatility. Lately the US financial markets You have seen a massive upward trend and continue to rise. Could we finally see the beginning of a recovery? Some don’t say so quickly.

Bank run

Lessons from 1929

According to analyst and lawyer Jake Chervinsky (@jchervinsky), there is room for skepticism about this upswing.

As he says, the Dow almost fell over in 1929 50% between September and November this year from 386 to 195 points. He then recovered in one 40% in the following five weeks reached 268 points.

Many certainly believed that the crisis was over at the time, but they were wrong. Over the next few years, the Dow continued to find lows and would soon bottom out at 41 points: 85% less than the alleged “reversal” of 1929/1930.

As Bitwise’s Chief Operating Officer (COO) clarified, this is a classic pattern during the bear market recovery.

What does that tell us about the recovery of the markets today? It seems to indicate that we are not out of danger yet and that it is too early to win.

The macroeconomic situation

If you want to get an idea of ​​the financial markets, it is helpful to consider the macroeconomic situation. The situation has troubled commentators. Unemployment claims in the United States have soared to a record high, consumer confidence has fallen and we are now effectively in a “recession”.

Analysts have described the current crisis as a “deflationary shock”. Global demand has dried up and bankruptcies are expected if the current blocking situation continues. Prices are expected to fall, but if ordinary people have less purchasing power than usual, this will only affect the macro picture.

In the midst of this unique crisis, the cryptocurrency industry is in a difficult position. However, it should be noted that Bitcoin

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As a leading blockchain and fintech news company, BeInCrypto always strives to comply with strict editorial guidelines and the highest journalistic standards. With this in mind, we always encourage and encourage readers to do their own research into the information contained in this article. This article is intended as news and is for informational purposes only. The topic of the article and the information provided may have an impact on the value of a digital or cryptocurrency asset, but is never intended. Likewise, the content of the article and the information contained therein do not intend and do not intend to provide sufficient information for a financial or investment decision. This article is not expressly intended as financial advice, it is not financial advice and should not be construed as financial advice. The content and information in this article have not been prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making an investment decision. The author of this article may have any amount of Bitcoin, cryptocurrencies, other digital currencies, or financial instruments at the time of writing, including but not limited to those listed in the content of this article.


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