Bitcoin Rally Not New Bull Market, Strategist Warns of Massive Crash Ahead

Macro strategist Henrik Zeberg has sounded a warning about Bitcoin's recent surge in price. He believes that the current movement is not the beginning of a new bull market, but rather a 'bear market rally' or 'fools' rally'. In an interview with Michaël van de Poppe, Zeberg stated that the increase in risk appetite spread first to stocks, then to Bitcoin and other cryptocurrencies, resulting in the current rise. He expects this trend to continue in the short term, but predicts a massive crash of around 90% from current levels once the 'bear market rally' runs its course.

Zebeg's bearish outlook centers on the global economy and the US dollar. He believes that the current weakness in the dollar index will not be permanent as the US economy heads towards recession, leading to a strengthening of the dollar and pressure on Bitcoin. Zeberg notes that Bitcoin has yet to be truly tested in a prolonged recession, and that sell-offs could be much more severe during a deeper economic crisis.