Bitcoin At $2 Trillion Still Faces Psychology Risk Newton Learned The Hard Way

Bitcoin’s rise beyond a $2 trillion market value has reignited a critical debate about market psychology. The milestone brought on a narrative belief within the broader crypto market, Henrik Zeberg, Head Macro Economist at Swissblock, quoted:

Zeberg countered this notion by introducing a stark historical precedent: the South Sea Bubble of 1720. This event, which famously bankrupted Sir Isaac Newton, serves as a powerful warning. It proves that market psychology can overwhelm any asset, regardless of its size.

In 1720, Britain’s entire nominal GDP was only £60–£70 million. The South Sea Company, however, reached a valuation of £150 million. This was nearly twice the nation’s economic output.

The soon after, famously wiped out investors, including Sir Isaac Newton. Analysts note this event is definitive proof that market psychology, not size, drives bubbles. Applying this 2x GDP scale to today, a similar bubble would imply a market value of $7.5 trillion.

Coin Edition analysts rightly pointed out that yes, valuations of magnitudes can still collapse, and that it happens when a rally is driven more out of sentiment than robust fundamentals. The team also laid out how markets tend to repeat emotional cycles, regardless of the technology.

Despite these historical warnings, Bitcoin’s expanding institutional adoption has created a “safety cushion.” This cushion was unseen in past bubbles. Analysts argue that widespread corporate and government integration could dampen volatility, even if corrections occur.

Market observer GandalfCrypto identified an inverse head and shoulders pattern forming on Bitcoin’s chart. This pattern signals a potential bullish reversal.

The neckline sits around $115,000–$116,000. A breakout above this level could target $130,000. Maintaining support near $108,000 remains essential to confirm the structure.

Meanwhile, financial author Robert Kiyosaki warned about an impending global crash and urged investors to seek refuge in hard assets. He stated that gold, silver, Bitcoin, and Ethereum offer protection from inflation and currency devaluation.

While his statements lacked specific timelines, they resonated with investors uneasy about rising debt. Critics, however, argue that his repeated warnings often amplify fear without substantiated data.