Economist Henrik Zeberg drew attention with his forecast predicting signs of weakness in the U.S. economy by mid-2024. Now he’s warning that the cryptocurrency market will experience a major crash in the coming months.
"The Biggest Bubble of the Last 100 Years"
Making important statements in an interview with the Metals and Miners YouTube channel, Zeberg stated that the US economy is experiencing the biggest bubble in the last 100 years. The economist emphasizes that the market value of the US stock market and the GDP ratio are almost twice the level before the Great Depression in 1929.
"We are living through the biggest bubble in history in terms of market cap/GDP ratio. Everyone can see that. When we came out of the 2008 financial crisis, a market cap/GDP ratio of 109 percent was a bubble. And in 2000, when we were laughing at 130 percent, we were saying, 'How could we not see that?' In 1929, it was 109 percent. What happened now? We are at 200 percent," Zeberg said.
Expect Cryptocurrencies to be Severely Impacted When the Bubble Bursts
The economist warned that cryptocurrencies would also be seriously affected when the bubble bursts, but added that both stocks and cryptocurrencies will make a big peak before this collapse, saying, "We also have a cryptocurrency bubble. 99 percent of the cryptocurrencies that exist right now will disappear, but it won't happen right away. We will see the biggest bubble of all time. We will see a magnificent peak rise, but it is ridiculous to have Dogecoin (DOGE) worth $15 billion. This is a bubble and it will burst."
In January, Zeberg said that 2024 would be a year of ups and downs and that he believed the business cycle would end. In April, he predicted that Bitcoin (BTC) would rise to $115,000 and then the bull market would peak. Bitcoin is currently trading at $59,596 and is priced at a 2% increase in the last 24 hours.
Considering Zeberg’s warnings, it seems investors should be careful and be prepared for a potential crash. The economist’s assessments have rekindled discussions about when the bubble in the markets will burst, and the prediction that there could be a serious decline, especially in the cryptocurrency market, may worry investors.