Peter Brandt Warns Bitcoin May Mirror 1977 Soybean Crash, Posing Risk to MSTR

Veteran trader Peter Brandt has compared Bitcoin’s (BTC) current price action to the 1977 soybean crash, warning that the crypto could face a sharp correction similar to the 50% plunge seen in soybeans. In a recent post on X, Brandt highlighted that Bitcoin appears to be forming a “broadening top” pattern, often signaling high volatility and potential downside. If history repeats itself, MicroStrategy (MSTR)—which holds over 200,000 BTC—could suffer significant losses due to its leveraged exposure.

Brandt, known for his technical expertise, cautioned traders about risk management, stating, “Anyone who bets 5% of their pot per trade will self-destruct—it’s just a question of time.” He noted that Bitcoin’s trajectory could swing drastically, either rallying to $250,000 or falling back toward $60,000, reflecting the uncertainty in the current market.

Meanwhile, fellow analyst TheMarketSniper acknowledged similarities between Bitcoin’s and the 1977 soybean charts but argued that the broader market dynamics differ today. Brandt responded modestly, saying both views could be valid, adding, “If BTC goes up, I want to be long; if it goes down, I want to be short.” This shift marks a more cautious stance from Brandt, who recently maintained that Bitcoin, Ethereum (ETH), XRP, and Stellar (XLM) were in a continuing bull cycle.

Other analysts echo growing caution. Market strategist Crypto₿irb’s “Cycle Peak Countdown” model suggests Bitcoin’s bull run is 99.3% complete, indicating a potential market top. At the same time, Binance founder Changpeng Zhao (CZ) reignited optimism by predicting Bitcoin will eventually surpass gold’s $30 trillion market cap, even as gold prices saw their sharpest one-day drop since 2013.

With BTC nearing what some call a “peak zone,” Brandt’s warning serves as a reminder that technical risks could challenge investor confidence—especially for leveraged plays like MicroStrategy.