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Zeberg predicts a severe recession and a collapse of the cryptocurrency market
Macroeconomist Henrik Zeberg has issued a stark warning: the United States could face a severe recession within the next two years. Using historical data and market indicators, Zeberg predicts that this recession could be the worst since the Great Depression of 1929.
Terrifying, right? Here’s all the information you need to know.
Historical patterns indicate problems
In a recent post on Platform X, Zeberg highlighted a key chart from Piper Sandler’s Recession Indicator. This chart compares two-year Treasury bond yields to the federal funds rate, showing trends in which changes in market yields often precede Federal Reserve actions and signal economic declines. Currently, inflation is at 3.4%, a level reminiscent of past economic problems.
Bearish signals from the RSI
The chart also emphasizes the Relative Strength Index (RSI), which measures momentum in price movements. Historically, significant bearish patterns in the RSI have heralded severe market crashes. The current “mega bearish structure” suggests such an impending decline, raising serious concerns about future economic stability.
Speculation about a potential recession has intensified as various economic indicators raise warning signals. Falling Treasury yields typically increase investor demand for safe-haven assets amid economic uncertainty, reflecting growing concerns about a looming market recession.
Blow-Off Top: a dangerous wave
There is speculation of a potential surge in US stocks and cryptocurrencies, indicating an unsustainable rise in asset prices before a sharp decline. This scenario usually involves rapid price increases driven by speculative buying, often leading to significant market corrections.
An anxious market
Investment research platform Game of Trades has highlighted the predictive ability of the 10-year/3-month US Treasury curve, predicting a likely recession in the second half of 2024. While large-cap companies lead the recent market rally and the As the cryptocurrency market consolidates, concerns about the timing and impact of a potential recession continue to grow.
Read also: Ripple vs SEC: what to expect from the ongoing legal battle
Do you think the experts are overreacting or is a storm brewing? Let us know your opinion.