The Bitcoin Market Index returns to ‚fear‘ on the 91st anniversary of the 1929 crash

Bitcoin (BTC) may be testing the $10,000, but more losses would not be unusual, says an asset manager on the 90th anniversary of the fall of Wall St. Louis.

In a Sept. 4 tweet, Raoul Pal said the drop in BTC prices in the last 24 hours was nothing out of the ordinary.

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Pal looks at the opportunity to buy from Bitcoin
„In post-halving bull cycles, bitcoin can often correct 25% (even 40%+ in 2017), driving traders out in the short term (or giving traders a chance on the short side),“ he wrote.

„Each of these was a buying opportunity – a DCA opportunity ahead?“

Pal was referring to „dollar cost averaging,“ which involves buying a certain amount of Bitcoin at regular intervals to slowly build a portfolio.

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As indicated by Cointelegraph, the practice has proven to be profitable for BTC, and the Square payment network has launched it as a consumer feature this year.

Comparing Thursday’s losses even with recent withdrawals from local highs, Bitcoin has come off less badly in the context of what the price indices would suggest.

However, the effect of the losses was a dramatic change in investor sentiment, according to the Fear and Greed Index. The index, only a few days ago firmly in its „greed“ zone, fell more than 30 points from 100 on Friday to 40 or „fear“ for the first time since July.

Markets fell on the anniversary of the Great Collapse of 1929

While analysts continue to see the potential for BTC/USD to fall to fill a gap in the USD 9,700 futures, through the macro markets, disturbing historical signals are appearing.

As commentator Holger Zschaepitz said on Friday, September 4 is the 91st anniversary of the day the markets began their rapid decline during the Wall Street crash.

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„Just to put things in perspective: After the fabulous gains in the stock market in the 1920s, the fall began just on September 4, 1929,“ he wrote.

As in 2020, the event followed several months of stock recovery; economist Irving Fisher infamously said just before stocks had „reached what appears to be a permanently high plateau.

Zschaepitz’s words come at a time when others are warning about the strength of gold, silver and the US dollar currency index. In the case of the latter, after days of gains that coincided with the selling pressure of Bitcoin Code prices, resistance is coming, says Cointelegraph Markets analyst filbfilb.

„Beware of this dump,“ he warned subscribers to his Telegram trading channel.

„The other markets are on their last legs. If they survive, then we’ll probably do well here. If they megacauge, you don’t want to be heavily leveraged on the long side.

Julian Assange: Google should have welcomed Bitcoin even then

The complete and unedited transcript of the interview and Assange’s early enthusiasm for the Bitcoin can be found on WikiLeaks. It shows a strange view of the history of technology and Schmidt’s curiosity about the digital currency.

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Although this Bitcoin secret may sound like a courageous statement by a controversial figure, Assange has indeed had serious discussions with former Google Executive and CEO Eric Schmidt in the past:

The discussion was later profiled during his work on Schmidt’s book „The New Digital Age“. The book was co-authored by former Hillary Clinton consultant Jared Cohem and published in 2013.

The complete and unedited transcript of the interview and Assange’s early enthusiasm for Bitcoin can be found on WikiLeaks. It shows a strange view of the history of technology and Schmidt’s curiosity about the digital currency.

At that time Assange had tried to convince Schmidt:

„You should get in early enough. Your Bitcoins will one day be worth a lot of money.“

A Bitcoin lesson
In the 5-hour conversation, Assange and Schmidt discussed various topics such as technology, privacy and data encryption. Suddenly Assange asked Schmidt if he had heard of Bitcoin before. Schmidt replied no, but Cohen pointed out that he had read about Bitcoin the day before. The founder of WikiLeaks saw the emergence of Bitcoin as a by-product of subgund encryption enthusiasts and repeatedly pointed out the cryptographic potential of the Bitcoin protocol and its structure.

„Bitcoin is something that was developed by cyberpunks a few years ago and it’s an alternative… It’s a stateless currency.“

He compared the Bitcoin to gold as a store of value and currency. Assange said back then that the Bitcoin price would be subject to strong price fluctuations in the future. However, he had no idea that the Bitcoin price would rise to almost USD 1,300 in the winter of 2013. The founder of WikiLeaks went into more detail and talked about Bitcoin mining and the parallels to gold mining. He explained the increasing difficulty of mining and the artificially created scarcity. He also mentioned some arguments for Bitcoin acceptance.

The WikiLeaks founder explained:

„Bitcoin scarcity will grow more and more over time and what does this mean for the Bitcoin incentive? You should get into the Bitcoin business now, as early as possible“.

Google’s Bitcoin attitude remains unclear
It looked as if the Bitcoin had awakened Google’s curiosity, but since Google has announced it will continue to investigate digital currencies, one has only heard of worried reticence. Earlier this year, some emails leaked out saying that Google was looking for ways to integrate Bitcoin. In a subsequent statement by Vice President Vic Gundotra, Google distanced itself from the statement. Cohen himself expressed cautious support for Bitcoin during a speech at the SXSW festival. At the time, he said that digital currencies are „inevitable“, but the way to get there is unclear.