A closely followed economist believes that strong rallies are ahead for Bitcoin (BTC) and crypto as he thinks conditions are ripe for policymakers to turn the money printers back on.
Citing data from the Atlanta Federal Reserve, Henrik Zeberg tells his 175,200 followers on the social media platform X that the US GDP is projected to contract by 1.5% in Q1 of 2025.
According to Zeberg, the contraction may force Fed Chair Jerome Powell to abruptly pivot and start printing US dollars to shore up the economy.
“But…. the economy is strong, right Powell…?
The economy is not strong – it is setting up for the worst recession and bear market since 1929.
But first blow-off top as liquidity now will come flushing in.”
Looking at Bitcoin, Zeberg says that its recent collapse to $78,000 is a necessary move to wipe out excessive leverage, making the BTC uptrend more sustainable.
“Fear has been dominating in crypto-land. BTC declined fast to ~$78,000 – just surpassing the daily 200 simple moving average a bit.
This is a healthy test area in a larger BULL MARKET.
In fact, with this updated knowledge of the structure of BTC, it seems like we could witness a strong reversal in BTC setting in soon.”
At time of writing, Bitcoin is trading for $92,597, up nearly 9% on the day.
Zeberg adds that stocks and altcoins will also witness blow-off top rallies. However, he warns that a recession is waiting in the wings.
“Unpopular perspectives:
1. BTC is about to soar.
2. Nasdaq and S&P500 will rally strongly.
3. Amazing Altseason about to set in.
Above constitutes the blow-off top.
Later recession is coming.”
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