A prominent economist is predicting a strong rally for Bitcoin (BTC) and the cryptocurrency market, citing favorable conditions for policymakers to resume printing money. Henrik Zeberg, a well-known figure in the financial world, shared his insights with his large following on X, highlighting data from the Atlanta Federal Reserve that projects a 1.5% contraction in the US GDP for the first quarter of 2025.
Zeberg believes that this economic downturn could prompt Federal Reserve Chair Jerome Powell to inject more US dollars into the economy to stimulate growth. He expressed concerns about the state of the economy, suggesting that a severe recession and bear market similar to the one experienced in 1929 could be on the horizon. However, he anticipates a short-term boost in liquidity that could lead to a “blow-off top” before the market downturn.
In terms of Bitcoin, Zeberg noted that the recent drop in price to $78,000 was necessary to eliminate excessive leverage in the market, setting the stage for a more sustainable uptrend. He sees this as a healthy correction within a larger bullish trend and predicts a strong reversal in the near future. As of now, Bitcoin is trading at $92,597, showing a nearly 9% increase for the day.
Zeberg also mentioned that stocks and altcoins are likely to experience significant rallies, marking a blow-off top phase in the market cycle. Despite the short-term optimism, he cautioned that a recession may be looming in the background.
In summary, Zeberg’s analysis points to a period of growth and potential for significant gains in the cryptocurrency and stock markets. However, investors should remain cautious as economic uncertainties persist. Stay informed and subscribe to receive the latest updates on market trends and price actions. Follow us on social media for more insights and analysis.