Economist Henrik Zeberg has raised alarms for Bitcoin (BTC) and the broader crypto market, calling it the clearest example of the financial bubble in today’s economy.
According to Zeberg, the speculative frenzy reflects historical enthusiasts driven by groundbreaking technologies such as the steam engine and the dot-com boom, he said in a July 30 X post.
Zeberg pointed out the main macroeconomic indicators: GDP ratio and GDP ratio. This is currently 213% or 226% if cryptocurrency is included.
“Like all bubbles, new technology is the driving force behind speculation. This time, the simplest police since 2008 is fueled by enthusiasts,” says Zeberg.
He argued that this level shows a severe overestimation comparable to the previous economic bubble that ended with a sharp collapse.
Interestingly, experts don’t believe that the bubble is driven by technology itself. He admits to being revolutionary, but by the vibrancy of an irrational market.
In this case, he pointed out that past tech booms ended in crashes despite their long-term importance.
Bitcoin ‘Technically Overrated’
Zeberg has not yet made the top spot in the market, but he warned that Bitcoin appears technically vulnerable at its current level. In fact, the insight is because Bitcoin is trading below the $120,000 mark after retreating from an all-time high of over $123,000.
His chart analysis outlines a wide range of oblique patterns, predicts potential local tops, and there is a significant decline that follows. Momentum indices such as the relative strength index (RSI) point to weakening intensity both in weekly and monthly time frames, suggesting formation of a multi-year top.
Zeberg concluded that Crypto Rally may still have short-term benefits, but the long-term outlook is bleak.
In particular, economists have previously warned that investors should expect to reach new highs before both cryptocurrency and stock markets collapse at blow-off tops.
As reported by Finbold, Zeberg believes the final crash could lead to the worst recession in history.
Special images via ShutterStock.
