Economist Henrik Zeberg had previously drawn attention with his prediction of signs of weakness in the US economy by mid-2024. Now, he is warning that the cryptocurrency market will experience a major crash in the coming months.
“The Biggest Bubble of the Last 100 Years”
In an interview with the Metals and Miners YouTube channel, Zeberg stated that the US economy is experiencing the biggest bubble of the last 100 years. The economist emphasizes that the market value to GDP ratio of the US stock market is almost twice the level before the Great Depression of 1929.
Zeberg said, “According to the market value/GDP ratio, we are experiencing the biggest bubble in history. Everyone can see this. When we came out of the 2008 financial crisis, a market value/GDP ratio of 109% was a bubble. And in 2000, we laughed at a ratio of 130% saying, ‘How did we not see this?’ 1929 was also 109%. What happened now? We are currently at 200%,” he stated.
He Expects Cryptocurrencies to Be Seriously Affected 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 would peak before this crash, saying, “We also have a cryptocurrency bubble. 99% of the existing cryptocurrencies will disappear, but this won’t happen immediately. We will see the biggest bubble of all time. We will see a magnificent peak rise, but the situation of Dogecoin (DOGE) being worth 15 billion dollars is ridiculous. This is a bubble and it will burst.”
In January, Zeberg stated that 2024 would be a volatile year and that the business cycle would end. In April, he predicted that Bitcoin (BTC) would rise to $115,000 and then the bull market would peak. Currently, Bitcoin is trading at $59,596, up 2% in the last 24 hours.
Given Zeberg’s warnings, it is understood that investors should be cautious and prepared for a potential crash. The economist’s evaluations bring back discussions about when the bubble in the markets will burst, while the prediction of a significant decline in the cryptocurrency market may worry investors.
