Famous economist Henrik Zeberg has warned that a major economic storm similar to one that occurred nearly a century ago could happen in 2025. According to the economist, Bitcoin (BTC) and altcoins are among the victims of this economic storm.
“A Major Recession is Coming”
Sharing his views with his followers on the social media platform X, Zeberg predicts that risky assets such as stocks and cryptocurrencies will continue to rise in the coming months. However, he warned that these rising conditions will suddenly end towards the end of the year, just when market participants become excessively exuberant.
Zeberg foresees an initial rise in US markets, with a peak surge as investors exit large and foreign markets, causing the cryptocurrency market and small-cap stocks to rise. According to him, this fluctuation will lead to general euphoria as investors believe the Fed will support the markets. Despite this optimism, Zeberg expects a major recession to begin by the end of the year.
He added that the Fed will try to support the economy by printing money to stimulate economic growth, but these actions will only delay an inevitable economic collapse. According to the economist, this situation will eventually lead to stagflation (a period characterized by slow economic growth, rising unemployment, and high inflation).
Emphasis on Temporary Surge
Zeberg also emphasized that the Fed’s intervention will only create a temporary surge in the markets. He added that as the economic recession and deflation are encountered, the Fed’s monetary stimulus will aim to balance stagflation but will not prevent a serious downturn. He predicted that the biggest recession and bear market since 1929 will occur in two stages: first deflation, followed by a temporary surge, and then entering stagflation.
At the beginning of January 2023, Zeberg made headlines by predicting that the US stock markets would reach record levels before a sudden crash. At that time, the S&P 500 was trading around 4,000, and Bitcoin was priced close to $2,000. Currently, the S&P 500 is at 5,321, and Bitcoin is priced around $70,000.
