Economist Henrik Zeberg expressed that there is an expectation of a collapse in traditional financial products and a big rise in altcoins.
Zeberg sees a significant bullish signal for altcoins in the cryptocurrency market and predicts that the general economic situation will continue to deteriorate. Making statements on the social media platform X, Zeberg stated that the decline in Bitcoin's market dominance rate shows that altcoins are starting to outperform Bitcoin.
A New Era Begins for the Rise of Altcoins
Indicators reflecting Bitcoin’s market dominance rate (BTC.D) are at 57.65% at the time of writing. Based on Elliott Wave Theory, Zeberg argued that a major upward wave will come in altcoins:
“There was a slight push in the first wave in the Bitcoin Dominance Index, and it was almost unnoticed. However, we will see the real big rise in altcoins in the third wave. After this process, the other three waves will follow. Time will tell when it will happen. The important thing is to trade on the right side.”
According to this theory, assets typically experience a five-wave rally, with the third wave usually marking the strongest rally.
“Blow-Off Top” Scenario Approaching
The economist is predicting a short-term "blow-off top" in the markets, a sudden price rise followed by a sharp decline. In technical analysis, this term refers to a sudden peak in price charts, followed immediately by a sharp decline.
Citing consumer surveys from Bloomberg and The Conference Board, Zeberg said investors are optimistic about markets in 2025, but such waves of optimism are often a precursor to a downturn:
“The peak has not yet come for S&P 500, Nasdaq, BTC and altcoins. There will be a big rally and this rally will end with a blow-off top. But here's the interesting thing: Now convince me why I should be so optimistic. The big peak is very close. (For Dow Jones, this peak may have already come).”