Crypto Market Predicted to Crash, But Traders May Still Profit in Final Rally

Crypto market predicted to crash by macroeconomist Henrik Zeberg, who warns of a "horrendous" decline and calls the current market "insane." A chart shared by Zeberg projects a peak market valuation of $12.95 trillion followed by a catastrophic plunge to $93 billion. Despite the bleak long-term outlook, Zeberg notes that the final rally could be highly profitable for traders.

Macroeconomist and technical analyst Henrik Zeberg has issued a stern warning about the cryptocurrency market, describing it as "the bubble of this era" and predicting a significant downturn. In a recent post, Zeberg marked a projected peak market valuation of $12.95 trillion around late 2025 and early 2026, followed by a catastrophic decline to $93 billion [1].

Zeberg's analysis suggests that the current market is in a rising wedge formation, a bearish technical analysis pattern that signals a potential reversal of an uptrend. He labeled this period as "Euphoria," reflecting previous bull runs in 2017 and 2021, each followed by a sharp downturn. The chart indicates that after achieving its peak valuation, the market will face a dramatic decline [1].

Despite the bleak long-term outlook, Zeberg notes that the final rally could be highly profitable for traders. He stated, "The extreme Rally to the BlowOffTop is on. This is where a lot of money can be made as Euphoria develops right into the top of the Business Cycle" [1].

Zeberg's warning aligns with his previous statements, where he described Bitcoin (CRYPTO: BTC) and the Nasdaq Composite index as being in a tech-driven bubble. He predicted a crash that could bring both assets back to 2022 levels [1].

Optimism in cryptocurrencies has skyrocketed amid sharp rallies in Bitcoin and Ethereum, with cryptocurrency analyst Benjamin Cowen suggesting that both assets are entering a "pivotal phase" in the current bull market. Additionally, Coin Bureau founder Nic Puckrin forecast Bitcoin could reach $150,000 by the end of 2025, largely contingent on an anticipated Federal Reserve rate cut around September [1].

On the other hand, some analysts remain optimistic. Standard Chartered has upped its Ethereum price targets, setting a new projection of $7,500 for the end of 2025 and lifting its 2028 year-end forecast from $7,500 to $25,000. Mike Novogratz, CEO of Galaxy Digital, predicts Bitcoin could hit $1 million, but only if the U.S. continues excessive money printing and overspending [2].

However, Zeberg's prediction of a horrendous crash is a stark reminder of the volatility and risk inherent in the cryptocurrency market. Investors should approach the market with caution and consider the potential for significant declines.

References:

[1] https://finance.yahoo.com/news/economist-warns-horrendous-crypto-crash-212909221.html

[2] https://u.today/xrp-breakout-to-360-still-possible-ethereum-could-hit-25000-by-2028-bitcoin-to-1-million-surpassing