Renowned economist Henrik Zeberg has issued a stark warning about a significant economic downturn anticipated in 2025, comparable to the economic turmoil experienced nearly a century ago. According to Zeberg, cryptocurrencies such as Bitcoin (BTC) and other digital currencies will be severely affected by this economic upheaval.

Warning of a Significant Recession

In his recent posts on the social media platform X, Zeberg shared his forecast that risky assets like stocks and cryptocurrencies will continue to rise in the near term. However, he cautioned that this upward trend will abruptly halt towards the end of the year, just when market participants grow overly optimistic. For the latest updates on financial and business news, you can visit COINTURK FINANCE.

Zeberg predicts that the US markets will experience an initial upswing, with a peak surge as investors withdraw from large and foreign markets, causing the cryptocurrency market and small-cap stocks to climb. This scenario will lead to widespread euphoria as investors anticipate support from the Federal Reserve. Despite this optimistic outlook, Zeberg expects a significant recession to commence by year-end.

He further explained that while the Fed will attempt to prop up the economy by printing money to stimulate growth, these measures will only postpone an unavoidable economic collapse. According to Zeberg, this situation will ultimately lead to stagflation, characterized by slow economic growth, rising unemployment, and high inflation.

Temporary Market Surge Emphasized

Zeberg highlighted that the Fed's interventions will only create a temporary surge in the markets. He noted that as the economic downturn and deflation unfold, the Fed’s monetary stimulus will try to counterbalance stagflation but will not avert a severe recession. He predicts that the most significant recession and bear market since 1929 will occur in two phases: an initial deflation, followed by a temporary surge, and then the onset of stagflation.

In early January 2023, Zeberg gained attention by predicting that US stock markets would reach record highs before experiencing a sudden crash. At that time, the S&P 500 was trading around 4,000, and Bitcoin was valued at approximately $2,000. Presently, the S&P 500 stands at 5,321, and Bitcoin is priced around $70,000.

Conclusion

Henrik Zeberg's prediction paints a grim picture of the future, warning of an impending economic crisis that could mirror the Great Depression. His analysis suggests a temporary market surge followed by a severe downturn, highlighting the potential for a major recession and the challenges that lie ahead for investors and the economy as a whole.