An economist who correctly predicted the US economy would show signs of weakness in mid-2024 is now warning of a huge crash in the crypto market.
The Biggest Bubble Ever?
Henrik Zeberg says the US economy is experiencing its biggest bubble in almost a century. He points to the US stock market’s value compared to the country’s overall economic output (GDP). This ratio is twice as high as it was in the late 1920s, right before the Great Depression. Zeberg says, “We’ve got the biggest bubble ever based on market value compared to GDP. It’s clear for everyone to see. After the 2008 financial crisis, a 109% ratio was considered a bubble. We laughed at 130% in 2000, wondering why we hadn’t seen it coming. And in 1929, it was 109% too. Guess what? Now it’s 200%.”
Cryptocurrencies in the Crosshairs
Zeberg believes that cryptocurrencies will take a big hit when this bubble bursts. He predicts that both the stock market and digital assets will reach their peak before crashing. He says, “We also have a crypto bubble. 99% of the cryptos out there are going to implode. It’s not happening now. We’re going to see the biggest bubble ever. There’s going to be a huge run-up before the crash. But when you have something like Dogecoin valued at $15 billion, it’s ridiculous. It’s a bubble and it’s going to burst.”
A Big Shift in the Market
Zeberg previously said that 2024 would be a year of big changes in the market, with a shift from a bullish to a bearish environment. He believes this will lead to a crash towards the end of the year. In April, he predicted that Bitcoin would reach $115,000 before hitting its peak. At the time of writing, Bitcoin is trading at $59,596.
Remember: This is just one economist’s opinion. It’s important to do your own research and make your own investment decisions.
/p>
