Altcoin
Economist Predicts Sharp Rise in Altcoins Before Recession: “Altseason Will Make Alts Fly”
June 10, 2024 10:18 am | 2 minute read
Ahead of a potential recession, economist Henrik Zeberg has predicted a significant rise in the altcoin market, suggesting that a euphoric bull run is imminent.
What happened: Zeberg predicted a significant surge in the altcoin market, Daily Hodl reported on Monday.
Zeberg is analyzing the TOTAL-ETH-BTC chart, which tracks the market capitalization of all crypto assets excluding Bitcoin (CRYPTO: Bitcoin) AND Ethereum (CRYPTO: ET). He believes this chart indicates an impending parabolic run for altcoins.
“US stocks and cryptocurrencies will rise in the final – and most speculative – phase of this economic cycle. Altseason will make the Alts fly,” Zeberg said.
Additionally, Zeberg presented a chart showing how central banks, such as the Federal Reserve and the European Central Bank (ECB), typically reduce rates just before a recession. He pointed out that the ECB recently cut funds rates on Thursday.
Zeberg pointed out that central banks often cut rates late in the economic cycle to prevent a recession. He posed the question of whether we are in an “advanced cycle” or on the verge of a “new economic expansion”.
Because matter: This prediction comes at a time when the cryptocurrency market is experiencing significant fluctuations. On June 6, major cryptocurrencies such as Bitcoin and Ethereum saw a pullback as investors awaited crucial data on the US labor market. Bitcoin rose to $71,500 but faced resistance, while Ethereum fell below $3,850.
In early May, a prominent cryptocurrency expert, known as Capital Recthe also predicted a surge in altcoins, highlighting this in particular Dogecoin (DOGE/USD). Analysis by Rekt Capital suggested that the market capitalization of all cryptocurrencies, excluding the top 10, was preparing for a rebound, with potential targets of $315 billion and $425 billion.
Furthermore, the approval of the Ethereum ETF in early June has further fueled the altcoin frenzy. This approval has intensified the competition between Ethereum and Solana (CRYPTO: SOL) for its dominant position in the smart contract arena. Analysts believe this influx of new investors could create a “rising tide that lifts all boats” effect, benefiting established altcoins such as Cardan (CRYPTO: ADA) AND Polka dot (CRYPTO: POINT).
Image via Shutterstock
This story was generated using Benzinga Neuro and modified by Pooja Rajkumari
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