Economist Henrik Zeberg believes Bitcoin (BTC) is primed for a massive rally before the cycle comes to a close.
In a new strategy session on the analytics platform Swissblock’s YouTube channel, Zeberg says Bitcoin will hit a “new extreme all-time high” as other risk assets, including stocks, rise into a “potential blow-off top.”
According to Zeberg, Bitcoin will then decline drastically after the blow-off top. The economist shares an inverse chart of Bitcoin to project his downside target for the crypto king.
“We are in the largest bubble ever. No question about that… What would I expect Bitcoin to do if we see 75% to 80% decline in the NASDAQ? Well, I will not first of all think that Bitcoin would outperform or do well in that crash. I think it would outperform to the downside, which means that it could drop by more than 75 to 80%…
If the NASDAQ drops by 75 to 85%, we could easily see a [Bitcoin] decline of 90% or 95% into the crash. This is what I think can happen with Bitcoin. A potential decline of around 95%, maybe worse into the bubble top or after the bubble top.”
The economist says such a drastic decline in the price of Bitcoin would be in line with historical precedent and the crypto king’s correlation to the stock market.
“And if we then turn to the NASDAQ and Bitcoin, because of the close correlation, we see that Bitcoin outperforms NASDAQ, not just to the upside but also to the downside.
In 2020, we saw NASDAQ declining by 28% during COVID crash, and we saw Bitcoin dropping by 63%.
NASDAQ in 2021 to 2022 dropped by 38%, Bitcoin by 77%.”
At time of writing, Bitcoin is worth $112,799.