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According to macro strategist Henrik Zeberg, the cryptocurrency market may be far from its top. His prediction is that total capitalization will climb toward $12 trillion before the current cycle runs out of steam. With the market currently at around $3.9 trillion, this would be the biggest single-cycle expansion in the market's history.
Zeberg's latest market analysis is based on an Elliott Wave framework, which maps the ups and downs of asset prices across five distinct phases.
He puts the crypto market in wave five — the final upward leg — and describes it as the stage where price gains often speed up as capital flows increase and sentiment turns really optimistic. His chart shows a possible range of $8.96 trillion to $12.81 trillion, with the upper limit being more likely.
This outlook is linked to a combination of technical and macroeconomic factors, as the strategist explains. He says Bitcoin (BTC) has been outperforming the Nasdaq during both rallies and corrections, which he thinks will continue.
At the same time, companies are holding more and more Bitcoin, inflation is still a problem and there is still a risk of a balance sheet recession — all of which could affect how fast prices come down once the rise stops.
What would Henrik Zeberg do?
The playbook for Zeberg is simple: jump in when an asset starts to gain traction, ride the main part of the move and get out before the peak is reached. He says that is the best way to capture value in what could be the most aggressive final stage the market has seen.
If he is right, this would add almost $8 trillion to the value of the crypto market from today's levels, setting a record peak before what he calls the deflation of the bubble.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team