Economist is extremely bullish on altcoins

Henrik Zeberg, a popular economist and analyst, is extremely bullish on altcoins at the moment. He expects a parabolic bull market before the global economy enters a recession. For his analysis, Zeberg looks at the TOTAL3 – a graph of the entire market minus Bitcoin and Ethereum.

It’s time for euphoria

According to the analyst, it is time for the euphoric part of the bull market. He expects TOTAL3 to rise to the level of $1.83 trillion. “The price explosions are far from over. US stocks and crypto are set to fly one more time in the most speculative phase of this cycle. The altseason is going to make altcoins fly.

The euphoria is coming,” says Zeberg’s analyst.

Ultimately, Zeberg sees TOTAL3 rising to a total market cap of $1.83 trillion. At the time of writing, it is just above $700 billion. In that respect, according to this analyst, altcoins still have some time to rise.

However, he predicts a global recession before the end of the year. In theory, that should be less good news for the market.

Bullish, but also bearish

So he is extremely bullish about the crypto market in the short term, but in the long term he sees some obstacles. Particularly in the form of a recession.

To substantiate this, Zeberg shares a graph in which we see that central banks often lower interest rates just before a recession starts. “Economic expansion on the horizon or the end of the cycle and therefore a recession?

Let me make it easy for people who find it difficult to understand where we are in the business cycle. On Thursday, the European Central Bank (ECB) chose to cut interest rates.

The ECB and the American central bank (Federal Reserve) always lower interest rates towards the end of the cycle to prevent the economy from entering a recession. Now look at the graph and think,” thus Zeberg.

He means to say that we are at the end of the economic party and that contraction is on the way. This could cause significant price drops when we really enter a recession.

However, at the moment he is still bullish on the market.