An economist who has rightly called that the US economy will show 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 the US economy is witnessing the biggest bubble in almost 100 years.
The economist emphasizes that the ratio of US stock market capitalization to GDP is almost double that of the late 1920s, just before the economy collapsed and entered the Great Depression.
“We have the largest ever bubble in market capitalization to GDP. Everyone could see it.
When we got out of the [2008] financial crisis, a market capitalization of 109% compared to GDP was a bubble. And in 2000 we laughed at 130% and said, ‘Why couldn’t we see this?’
And 1929 was also 109%. Well, guess what? Now we have 200%.”
Zeberg warns that cryptocurrencies will be hit hard once the bubble bursts.
But before he witnesses a collapse, the economist reiterates his prediction that both the stock market and digital assets will end their bull markets in a huge blow.
“We also have a crypto bubble. 99% of the cryptos we have will implode. So it’s not imploding now. We’re going to have the biggest bubble of all time. We’re going to have a fantastic run-up to the blow-off top.
But when you have something like Dogecoin worth $15 billion, that’s ridiculous. It is a bubble and it will burst.”
In January, Zeberg said 2024 would be a year of a swing, believing the business cycle was coming to an end.
“As we get to the middle of this year, I think we’ll see a change from this very bullish environment to the direct opposite, and I think we’ll see a crash in the latter part of the year.”
In April, Zeberg predicted that Bitcoin (BTC) would rise as high as $115,000 before reaching a bull market top.
At the time of writing, Bitcoin is trading at $59,596, up 2% in the past day.
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