Bitcoin's Surge: Recession Fears Spark Crypto Rally

Bitcoin and crypto markets are poised for a strong rally, according to economist Henrik Zeberg, who believes that the US economy is on the brink of a severe recession. Zeberg, with over 175,000 followers on X, cited data from the Atlanta Federal Reserve, suggesting that the US GDP is projected to contract by 1.5% in Q1 of 2025. This contraction, he argues, may force Fed Chair Jerome Powell to pivot and start printing US dollars to stimulate the economy.

Zeberg predicts a "blow-off top" rally for Bitcoin and other cryptocurrencies, as liquidity is expected to increase. He believes that Bitcoin's recent decline to $78,000 is a necessary move to wipe out excessive leverage, making the BTC uptrend more sustainable. At the time of writing, Bitcoin was trading at $92,597, up nearly 9% on the day.

Zeberg also anticipates strong rallies in stocks and altcoins, but warns that a recession is on the horizon. He advises investors to be prepared for the upcoming economic downturn while enjoying the short-term gains in the crypto market.