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Economist Henrik Zeberg, closely followed by the financial world, shared his optimistic view for stocks and cryptocurrencies over the next few months. Addressing his followers on the social media platform X, Zeberg said he expects a strong rally in both Bitcoin and altcoins, as well as in stocks, potentially lasting until the end of the year.
Strong Rally Prediction for Bitcoin and Altcoins
Zeberg based his bullish forecast on two main narratives. First, he argued that the expected “peak blow-off”—a sharp rise in market prices before a significant drop—has not yet occurred. Therefore, he emphasized that he expects an oversized rally in certain stock indices, Bitcoin, and altcoins.
Secondly, he mentioned that he believes market sentiment will become extremely bullish, further fueling the rise. Zeberg predicts that as markets continue to climb, he will be labeled a “Permanent Bear” due to his caution regarding U.S. markets, despite seeing a peak formation outside the U.S. He anticipates that bulls will credit developments in artificial intelligence (AI) and Federal Reserve (Fed) liquidity for the market’s upward movement.
“The Rise Will Not Be Sustainable”
On the other hand, Zeberg warned that the rise in risky assets, including stocks and cryptocurrencies, will not be sustainable. He said that a dramatic drop will occur once the market peaks. Specifically, he predicts that the peak in U.S. markets could be seen in the third or fourth quarter of 2024, followed by a recession starting in the last quarter of the year. According to the renowned economist, this recession will lead to a rapid market decline.
Zeberg also commented on the enthusiasm he expects to see among market participants as the S&P 500 index reaches new highs. He suggested that as the S&P 500 approaches the 6,150 level, the bullish trend will increase, driven by AI and liquidity being cited as reasons for the market’s continued rise. However, he warned that this enthusiasm would be a sign that the market is nearing its peak.
Currently, the S&P 500 is trading around the 5,221 level. Zeberg’s analysis indicates that while the short-term outlook is positive, investors should be prepared for significant corrections ahead.
