Economist Predicts Major Altcoin Surge Before Recession: 'Altseason Will Send Alts Flying'

Ahead of a potential recession, economist Henrik Zeberg has forecasted a significant rise in the altcoin market, suggesting a euphoric bull run is imminent.

What Happened: Zeberg has forecasted a significant rise in the altcoin market, Daily Hodl reported on Monday.

Zeberg is analyzing the TOTAL-ETH-BTC chart, which tracks the market cap of all crypto assets excluding Bitcoin BTC/USD and Ethereum ETH/USD. He believes this chart indicates an upcoming parabolic run for altcoins.

“U.S. Equities and Crypto will soar into the final – and most speculative phase – of this Business Cycle. Altseason will send Alts flying,” Zeberg said.

Additionally, Zeberg presented a chart showing that central banks, such as the Federal Reserve and the European Central Bank (ECB), typically reduce rates just before a recession. He pointed out that the ECB recently cut its Fund Rates on Thursday.

Zeberg emphasized that central banks often cut rates late in the economic cycle to prevent a recession. He posed the question of whether we are in a “Late Cycle” or on the brink of a “New Economic Expansion.”

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Why It Matters: This prediction comes at a time when the cryptocurrency market is experiencing significant fluctuations. On June 6, leading cryptocurrencies like Bitcoin and Ethereum saw a pullback as investors awaited crucial U.S. labor market data. Bitcoin surged to $71,500 but faced resistance, while Ethereum dropped below $3,850.

In early May, a prominent crypto expert, known as Rekt Capital, also forecasted a surge in altcoins, particularly highlighting Dogecoin (DOGE/USD). Rekt Capital’s analysis suggested that the market cap of all cryptocurrencies excluding the top 10 was gearing up for a rebound, with potential targets of $315 billion and $425 billion.

Moreover, the approval of Ethereum ETFs in early June has further fueled the altcoin frenzy. This approval has intensified the competition between Ethereum and Solana SOL/USD for dominance in the smart contract arena. Analysts believe that this influx of new investors could create a “rising tide lifting all boats” effect, benefiting established altcoins like Cardano ADA/USD and Polkadot DOT/USD.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari