Bitcoin 
$103,583 and global markets may experience a remarkable recovery. Economist Henrik Zeberg expressed his expectation for a significant rise in markets based on financial data. He emphasized that the U.S. economy entering a contraction phase might give markets a new direction, suggesting that the recent price correction in Bitcoin could pave the way for long-term gains.
U.S. Economic Contraction and Market Effects
According to data from the Atlanta Federal Reserve, the U.S. economy could contract by 1.5% in the first quarter of 2025. Zeberg believes this contraction may prompt the central bank to alter its monetary policies. Fed Chairman Jerome Powell could attempt to prevent an economic collapse by providing more liquidity to the markets.
Zeberg noted that if the central bank increases liquidity, many assets, including stocks and Bitcoin, could rapidly gain value. He suggests that the recent drop in Bitcoin to around $78,000 is cleaning up unnecessary leverage in the market, preparing a healthier ground for a rise. Following this process, he predicts a strong upturn in the cryptocurrency market.
Expectations for Bitcoin and Market Upsurge
Henrik Zeberg highlights the potential for sharp price movements in global markets. There is a likelihood of a rally in assets such as Nasdaq, S&P 500, and Bitcoin. However, he warns that these movements are also accompanied by the risk of economic recession.
The recent decline in Bitcoin prices is cleaning out excessive leverage, supporting a long-term upward trend. Zeberg advises Bitcoin investors to focus on opportunities in the market instead of panicking. He points out that technical data indicates the potential for a strong rise in the markets.
Zeberg cautions that sudden changes may occur in financial markets, urging investors to remain vigilant. The uncertainty of global economic conditions necessitates the development of different strategies by investors. Economic expansion and market corrections could create new opportunities in the cryptocurrency sector.
