Economist Warns Of 'Horrendous' Crypto Crash — But Says Big Profits Can Still Be Made Before Valuation Hits This Level

Macroeconomist and technical analyst Henrik Zeberg issued a stern warning about the cryptocurrency market on Tuesday, describing it as the “Bubble of this era” and predicting a big crash.Disclosure: 82% of retail CFD accounts lose moneyWhen Is The Blow-Off Top Coming?In an X post, Zeberg called the current state of the market “insane” and predicted a “horrendous” crash. Zeberg marked the so-called “Bubble” area on a chart, with a projected peak market valuation of $12.95 trillion around late 2025 and early 2026. The chart has multiple “Euphoria” labels, representing previous bull runs in 2017 and 2021, followed by a sharp downturn.The structure resembled a rising wedge formation, a bearish technical analysis pattern that signals a potential reversal of an uptrend. The chart indicated that after achieving its peak valuation, the market would face a catastrophic decline, potentially plunging to $93 billion. For context, the cryptocurrency market was worth $4 trillion as of this writing. “The extreme Rally to the BlowOffTop is on. This is where a lot of money can be made as Euphoria develops right into the top of the Business Cycle,” Zeberg added. A cryptocurrency enthusiast, going by the pseudonym doc_ley on X, questioned Zeberg’s prediction, noting that the $12.95 trillion would likely take until mid- to late-2026, which also appears unkiley owing to the expected “U.S. recession.”What Are Other Analysts Saying?Zeberg’s warning aligns with his previous statements, where he described Bitcoin BTC/USD and the Nasdaq Composite index as being in a tech-driven bubble. He predicted a crash that could bring both assets back to 2022 levels. Optimism in cryptocurrencies has skyrocketed amid sharp rallies in Bitcoin and Ethereum, with cryptocurrency analyst Benjamin Cowen suggesting that both assets are entering a “pivotal phase” in the current bull market.Additionally, Coin Bureau founder Nic Puckrin forecast Bitcoin could reach $150,000 by the end of 2025, largely contingent on an anticipated Federal Reserve rate cut around September.Price Action: At the time of writing, BTC was exchanging hands at $120,056, up 1.10% in the last 24 hours, according to data from Benzinga Pro. ETH traded up 7.70% at $4,633 at last check. Bitcoin Gains As CPI Comes In Cooler Than Expected; Ethereum, Dogecoin, XRP Also Surge: Analyst Sees ETH Reaching $6,000 Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.Image via Shutterstock