An economist with a significant following is predicting imminent strong rallies for Bitcoin (BTC) and the broader crypto market, as he believes the circumstances are ideal for policymakers to reactivate the money printers.
Henrik Zeberg shared with his 175,200 followers on the social media platform X that, according to data from the Atlanta Federal Reserve, the US GDP is anticipated to shrink by 1.5% in the first quarter of 2025.
Zeberg suggests that this economic contraction could prompt Fed Chair Jerome Powell to make a swift pivot and begin printing US dollars to stabilize the economy.
“But…. the economy is strong, right Powell…?
The economy is not strong – it is preparing for the most severe recession and bear market since 1929.
However, there will likely be a blow-off top as liquidity flushes into the market.”
Regarding Bitcoin, Zeberg asserts that its recent drop to $78,000 was a necessary adjustment to eliminate excessive leverage, ultimately making the upward trend of BTC more sustainable.
“Fear has been prevalent in the crypto space. BTC rapidly fell to approximately $78,000 – just barely surpassing the daily 200 simple moving average.
This is a crucial testing zone within a larger BULL MARKET.
With the updated understanding of BTC’s structure, it seems we may soon see a strong reversal in BTC.”
At the time of this report, Bitcoin is priced at $92,597, reflecting an almost 9% increase for the day.
Zeberg also mentions that stocks and altcoins are expected to experience dramatic rallies, though he cautions that a recession looms.
“Unpopular perspectives:
1. BTC is poised to surge.
2. Nasdaq and S&P 500 will experience significant rallies.
3. An incredible Altseason is on the horizon.
These developments constitute the blow-off top.
Post this, a recession will follow.”
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Disclaimer: The views expressed at The Daily Hodl are not investment advice. Investors should conduct their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Be aware that your transfers and trades are at your own risk, and any potential losses are your responsibility. The Daily Hodl does not advocate for the buying or selling of any cryptocurrencies or digital assets, nor does it serve as an investment advisor. Note that The Daily Hodl engages in affiliate marketing.
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