An economist who accurately called that the US economy will flash signs of weakness by mid-2024 is warning that the crypto markets will witness a massive collapse in the coming months.
In a new interview on the Metals and Miners YouTube channel, Henrik Zeberg says that the US economy is witnessing its largest bubble in nearly 100 years.
[adinserter block="1"]The economist highlights that the US stock market capitalization to GDP ratio is almost double the figure seen in the late 1920s, just before the economy crashed and entered the Great Depression.
“We have the largest bubble by market capitalization to GDP ever. Everybody could see it.
As we got out of the [2008] financial crisis, a 109% market capitalization to GDP was a bubble. And we laughed at 130% back in 2000, saying, ‘Why couldn’t we see this?’
And 1929 was 109% as well. Well, guess what? Now we have 200%.”
Zeberg warns that cryptocurrencies will get hit hard once the bubble bursts.
But before witnessing a collapse, the economist reiterates his prediction that both the stock market and digital assets would end their bull markets in a massive blow-off top.
“We also have a crypto bubble. 99% of the cryptos we have out there are going to implode. So it’s not imploding now. We’re going to have the greatest bubble of all time. We’re going to have a fantastic run-up on the blow-off top.
But when you have something like Dogecoin valued at $15 billion, it’s ridiculous. It’s a bubble and it’s going to burst.”
In January, Zeberg said that 2024 would be a whipsaw year, believing the business cycle was coming to an end.
“When we get to the middle of this year, I think we will see a change from this very bullish environment to the outright opposite, and I think we’re going to see a crash into the last part of the year.”
In April, Zeberg predicted that Bitcoin (BTC) would rally to as high as $115,000 before hitting a bull market top.
At time of writing, Bitcoin is trading for $59,596, up 2% in the past day.
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