Key Points
- Economist Henrik Zeberg warns the crypto market is in a massive bubble that will end in a “horrendous” crash.
- He predicts the market will first rally to a peak of nearly $13 trillion in late 2025 or early 2026.
- After the peak, he expects a devastating crash that could send the market’s value down to $93 billion.
- His view contrasts with other analysts who remain bullish, with some predicting Bitcoin could hit $150,000.
Macroeconomist Henrik Zeberg has issued a dire warning for the cryptocurrency market, calling the current rally the “Bubble of this era” and predicting it will end in a “horrendous” crash. In a social media post on Tuesday, Zeberg described the market’s current state as “insane” and laid out a dramatic forecast for its future.
He believes the crypto market will first soar to a peak valuation of nearly $13 trillion in late 2025 or early 2026 in a final “Blow-Off Top.”
After this period of “Euphoria,” he predicts a catastrophic crash that could wipe out the market’s value, potentially sending it plummeting to just $93 billion. To put that in perspective, the entire crypto market is currently worth around $4 trillion.
Interestingly, Zeberg isn’t saying the crash is coming tomorrow. He believes there’s still a massive rally ahead, a final euphoric phase where investors can make a lot of money before the bubble finally pops. His analysis is based on a technical chart pattern known as a “rising wedge,” which often signals that a sharp reversal is on the horizon.
Zeberg’s bearish long-term outlook stands in sharp contrast to the growing optimism in the crypto market. Other analysts, like Benjamin Cowen, see the market entering a “pivotal phase” of the current bull run.
Nic Puckrin, founder of Coin Bureau, has even forecast that Bitcoin could hit $150,000 by the end of 2025, fueled by expected interest rate cuts from the Federal Reserve.
