Famous economist Henrik Zeberg believes that despite the recent market correction, the crypto and US stock markets will rise strongly, but he issued a warning. Zeberg stated to his followers on the social media platform X that it is still early for crypto and stock markets to crash and enter a long-term downtrend.
Issued a Warning for Stock and Crypto Markets
At the beginning of the year, Zeberg predicted that after a wild rise, the stock and crypto markets would crash. He also added that when signs of a recession appeared in the US, the Fed would support the economy by printing money. Zeberg’s scenario seems to be coming true with the S&P 500 dropping by 3 percent on Monday, experiencing its worst selling pressure since 2022.
The economist emphasized that the US markets have not yet peaked and, as he said in January, cracks will begin to appear in the markets by mid-2024, indicating an approaching recession. Zeberg predicts that the Fed will step in during this period to stimulate the markets.
Zeberg stressed that the markets will face the biggest recession and bear market since 1929, but this will not happen yet. According to Zeberg, the savior will step in now, creating a strong recovery and new peaks in the US markets, but this will not be enough to prevent the big crash.
Pointed to October for the Crypto Market
Zeberg expects the crypto market to make sharp rises during this period and for the asset class to reach a bull market peak in October of this year. The economist highlighted that small-cap stocks and the crypto market will be engulfed in extreme bullish sentiment and enthusiasm but also noted that the ultimate peak is approaching.
Currently, Bitcoin (BTC) is trading around $56,000, recovering by up to 15 percent after dropping to $48,800 on August 5. While Zeberg’s predictions provide important clues about the future course of the markets, they are critical for investors. It seems likely that the markets will experience short-term major rallies before reaching their peak, but as the economist noted, a major market correction and recession should be expected following these rallies.
