Bitcoin Rallies Expected Amid Economic Shift

A closely followed economist, Henrik Zeberg, predicts strong rallies for Bitcoin (BTC) as policymakers may revert to money printing strategies.

Economic Insights

Zeberg, with over 175,200 followers on platform X, cites data from the Atlanta Federal Reserve suggesting the US GDP could contract by 1.5% in Q1 of 2025. This downturn may prompt Fed Chair Jerome Powell to pivot, reinstituting US dollar printing to stabilize 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.”

According to Zeberg, Bitcoin’s recent drop to around $78,000 was necessary to eliminate excess leverage, thereby facilitating a more robust uptrend in the future:

> “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.
> With this updated knowledge of the structure of BTC, it seems like we could witness a strong reversal in BTC setting in soon.”

At the time of writing, Bitcoin is priced at $92,597, reflecting a nearly 9% increase within the day. Zeberg also forecasts strong rallies for stocks and altcoins but cautions that a recession looms ominously.

> “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.”