Macroeconomist Henrik Zeberg is notable for his "Piper Sandler Rule", which he claims has accurately predicted recessions since the 1940s. According to Zeberg, this rule currently signals a recession, pointing to problems awaiting the economy. The slow deterioration in the labor market and the pressure of high interest payments on the real economy will leave consumers in a difficult situation.

Expectation of Severe Economic Recession

Henrik Zeberg predicts a severe recession that could include crises in banking and pension funds. Zeberg opposes the idea that the Federal Reserve or liquidity injections can prevent the upcoming economic downturn, emphasizing that the real economy is in danger. He states that optimistic rhetoric regarding the belief that the Fed will prevent a major recession is misleading.

Zeberg predicts that there will be one last fluctuation in the markets before the recession begins. He states that markets may reach new peaks during this period, but these gains may be lost quickly as there will be significant economic turmoil afterwards.

Zeberg's analysis highlights the importance of paying attention to key economic indicators rather than relying solely on central bank interventions or market sentiment. He argues that understanding the dynamics of the real economy is crucial to anticipating and effectively weathering periods of economic downturn.

How Could Bitcoin Behave in the Event of a Recession?

During periods of economic recession, Bitcoin's behavior can be uncertain. When economic uncertainty and inflation risks increase, demand for decentralized and limited-supply assets such as Bitcoin may increase. This may make Bitcoin attractive for those who want to hedge against fluctuations in traditional markets.

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