Trader Foresees Imminent End to Current Crypto Rally

By Ben Knight February 09, 2024 In Cryptocurrency
Source: Adobe Stock
  • The crypto market has defied bullish and bearish predictions over the past month, with the price of most assets remaining relatively stable.
  • Analyst Henrik Zeberg maintains that a crypto crash is coming, despite short-term gains.
  • He cites rising interest rates, worse housing affordability and continued cautious spending as major arguments.
  • Zeberg sees the recent (and potentially upcoming) uptick as a dead cat bounce that will precede a longer-term decline.

Crypto has had an eventful past month. Many predicted that the Securities and Exchange Commission’s spot ETF approval would catapult the market into a frenzy unlike the world’s ever seen. Others predicted a ‘Great Depression ’-esque crash that would wipe millions from the industry. The reality? The market has swayed and swerved but mostly stayed the same. However, analyst Henrik Zeberg is still sticking to his guns, suggesting that despite the shorter-term (6 month) rally, the crypto market is still gearing up for the crash of a lifetime.

Interest Rates and Housing Market Instability Potential Catalysts

In a tweet posted the day after ETF approval in January, Henrik Zeberg outlined his belief that a crypto market plunge is bound to happen at some point in 2024. He suggested that it wouldn’t just be any old downturn, but a market fall equivalent to that of 1929’s calamitous Black Tuesday. 

While there’s probably a bit of mayo on this claim to capture the attention of his followers, Zeberg isn’t necessarily a crypto doomer beating the same old horse. He cites several interesting metrics that inform his prediction, largely revolving around the current inflationary environment.

Zeberg argues that the constraints caused by Covid-19 still haven’t been fully realised yet, with rising interest rates and lower housing supply leading to more and more people saving money rather than spending. This is the intention of rising interest rates (to slow inflation) but it does tend to have broader macroeconomic effects. Even though the cash rate is set to finally reduce a little in 2024, Zeberg believes that the pressure it creates on the economy hasn’t been fully priced into the crypto markets yet.


Yesterday, Zeberg added another tweet to his predictions, suggesting that the current BTC rally (up 6%+ on the week) is an indicator of a longer-term market failure. While the market may see increasing gains over the next few months, he doesn’t think the crypto sector will break out into a full-blown bullish environment. Rather, he believes once it hits the top, investors will start rotating to other sectors, preceding the biggest drop the crypto world has ever seen. 

Of course, this is just the opinion of one trader. While he makes some interesting points, there are many reasonable arguments against the predictions he is making. Ultimately, investing is never a sure thing and nobody is always going to be correct. 

Ben Knight

Ben Knight

Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.

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