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.”
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.
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
