Economist predicts upcoming ‘strong bullish sentiment and euphoria’ before worst crash 
Finance Aug 6, 2024 Share
As the global market continues to experience notable downturns, an economist believes a silver lining exists.
Particularly, economist Henrik Zeberg, in an X post on August 6, predicted that after the current bearish sentiments, investors should expect a surge in bullish sentiment and market euphoria in the coming months.
According to Zeberg’s analysis, the U.S. stock market and the cryptocurrency market, particularly Bitcoin (BTC), are expected to reach new all-time highs soon.
Picks for you
Bitcoin signals 'last buying opportunity before mega bull run' 6 mins ago Bitcoin and S&P 500 massive crash reveals key insights, according to analyst 57 mins ago Short squeeze alert as crypto bears surge amid recession fears 1 hour ago Is Elon Musk buying Bitcoin dip? ‘Encoded message’ sparks debate 2 hours ago
Zeberg outlined his expectation that the U.S. stock market and cryptocurrencies will experience significant gains as the current bearish sentiment shifts to a strong bullish outlook.
“As we in the coming few months reach ATHs in the U.S. stock market and in BTC+ Crypto, the current bearish sentiment will develop into strong bullish sentiment and euphoria – and the markets will soar!!” Zeberg stated.
Upcoming recession
Despite this optimistic short-term outlook, Zeberg warned of an impending recession and the largest bear market since the Great Depression. He anticipates that the downturn will be severe and historic after the initial market highs.
“I will be told that I’m wrong about my forecast of a coming top in U.S. markets. But recession is coming and the largest bear market since 1929 will begin. But first blow off top (in U.S. markets!),” he added.
Indeed, in recent months, the economist has increasingly warned that while the market will likely surge, investors need to brace themselves for one of the worst downturns in history. Notably, the markets are now undergoing a correction sparked by fears of a possible recession hitting the United States.
Possible recession tension
This follows poor job data from the United States economy, showing that unemployment is rising. Consequently, the stock market recorded a significant capital outflow running into trillions of dollars, with indices such as the Nasdaq-100 and the S&P 500 recording notable losses. Some analysts have maintained that the upcoming market top will likely see the S&P 500 hit over 6,000 points before a massive correction.
On the other hand, crypto markets have also recorded notable capital outflow, led by Bitcoin, struggling to maintain its valuation above the $50,000 support zone. Although Bitcoin has recovered in the last 24 hours, the leading cryptocurrency still faces significant uncertainty after briefly dropping below $50,000.
In the meantime, market attention now turns to the Federal Reserve’s next monetary policy, which will likely impact the economy’s trajectory.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.