Altcoins
Economist Predicts Major Altcoin Rally Before Recession: “Altseason Will Make Alts Fly”
June 10, 2024 10:18 a.m. | 2 minutes of reading
Faced with a potential recession, the economist Henrik Zeberg predicted a significant rise in the altcoin market, suggesting that a euphoric bull run is imminent.
What happened: Zeberg predicted a significant rise in the altcoin market, Daily Hodl reported Monday.
Zeberg analyzes the TOTAL-ETH-BTC chart, which tracks the market cap of all crypto assets excluding Bitcoin (CRYPTO: BTC) And Ethereum (CRYPTO: ETH). He believes this chart indicates an upcoming parabolic run for altcoins.
“US stocks and crypto will enter the final – and most speculative – phase of this economic cycle. Altseason will make Alts fly,” Zeberg said.
Additionally, Zeberg presented a chart showing that central banks, such as the Federal Reserve and the European Central Bank (ECB), typically cut rates just before a recession. He pointed out that the ECB recently lowered its key rates on Thursday.
Zeberg pointed out that central banks often cut rates at the end of the business cycle to avoid a recession. He posed the question of whether we are in a “late cycle” or on the verge of a “new economic expansion”.
Why is this important: This prediction comes at a time when the cryptocurrency market is experiencing significant fluctuations. On June 6, major cryptocurrencies like Bitcoin and Ethereum fell as investors awaited crucial data on the US labor market. Bitcoin surged to $71,500 but ran into resistance, while Ethereum fell below $3,850.
In early May, a prominent cryptography expert known as Rekt Capitalalso predicted an increase in altcoins, particularly highlighting Dogecoin (DOGE/USD). Rekt Capital’s analysis suggests that the market capitalization of all cryptocurrencies except the top 10 is gearing up for a rebound, with potential targets of $315 billion and $425 billion.
Additionally, the approval of Ethereum ETF in early June further fueled the altcoin frenzy. This approval has intensified competition between Ethereum and Solana (CRYPTO: GROUND) for dominance in the smart contract space. Analysts believe this influx of new investors could create a “rising tide lifting all boats” effect, benefiting established altcoins like Cardano (CRYPTO: ADA) And Peas (CRYPTO: POINT).
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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