Markets
Zeberg predicts major slowdown and consequences in crypto market
Macroeconomist Henrik Zeberg has issued a stark warning: the United States could face a serious recession in 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 is all the information you need to know.
Historical patterns indicate problems
In a recent post on Platform X, Zeberg highlighted a key chart from the Piper Sandler Recession Indicator. This chart compares two-year Treasury yields to the Federal Funds Rate, showing trends in which changes in market yields often preceded Federal Reserve actions and signaled economic declines. Currently, inflation is at 3.4%, a level reminiscent of past economic problems.
Bearish RSI Signals
The chart also emphasizes the Relative Strength Index (RSI), which measures the momentum in price movements. Historically, significant bearish patterns in the RSI have foreshadowed major market declines. The current “Mega Bearish Structure” suggests a similar imminent decline, raising serious concerns about future economic stability.
Speculation about a potential recession intensified as several economic indicators issued warning signals. Falling Treasury yields typically increase investor demand for safe assets in a context of economic uncertainty, reflecting growing concerns about an imminent market recession.
Blow-Off Top: A dangerous wave
There is speculation about a potential breakout in US stocks and cryptocurrencies, indicating an unsustainable rise in asset prices before a sharp decline. This scenario generally involves rapid price increases driven by speculative buying, often leading to significant market corrections.
An anxious market
Investment research platform Game of Trades highlighted the predictive ability of the 10-year/3-month US Treasury curve, predicting a likely recession in the second half of 2024. As large-cap companies lead the recent market rally As the cryptocurrency market consolidates, concerns about the timing and impact of a potential recession continue to mount.
Read too: Ripple vs SEC: What to expect next in the ongoing legal battle
Do you think the experts are exaggerating or is a storm brewing? Let us know your opinion.