Is Bitcoin on the Brink of a Massive Bubble Burst?
Renowned macroeconomist Henrik Zeberg has issued a stark warning to the Bitcoin community, suggesting that the cryptocurrency is experiencing what he describes as the “most extreme bubble of all time.” Zeberg advises investors to brace for a dramatic downturn once Bitcoin’s current upward trajectory reaches its zenith.
Contrasting Views on Bitcoin’s Future
Zeberg’s bearish perspective starkly contrasts with the prevailing optimism seen on Wall Street and within financial media circles. These entities continue to laud Bitcoin’s resilience, especially amidst the prevailing global macroeconomic uncertainties.
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The economist draws parallels between the current widespread euphoria surrounding Bitcoin and historical market bubbles, noting that such exuberance often precedes significant market corrections. In a social media post on October 15, Zeberg highlighted these concerns.
Henrik Zeberg’s Insights on Bitcoin
According to Zeberg, Bitcoin is undergoing an “extreme bubble” phase. He referenced the famed investor Warren Buffett, who has likened Bitcoin to “rat-poison squared.” Zeberg also pointed out a substantial negative divergence in Bitcoin’s weekly, monthly, and quarterly charts, suggesting a bearish outlook despite the ongoing rally.
Anticipating Bitcoin’s Final Rally
Zeberg predicts that Bitcoin is on the verge of a final rally before a potential market crash, which he believes could be one of the most severe in history. His analysis is backed by technical indicators that reveal Bitcoin’s long-term price structure forming a rising wedge pattern, commonly associated with market tops.
The analysis indicates that Bitcoin is entering the fifth and final wave of its long-term uptrend, a phase often characterized by peak optimism and sharp reversals. Zeberg also noted a noticeable divergence between Bitcoin’s price and its Relative Strength Index (RSI) across various timeframes, signaling waning momentum despite continued price increases.
According to Zeberg’s forecast, Bitcoin’s peak might lead to three potential scenarios: a best-case scenario with a drop to $16,000, a medium-case scenario with a correction to $4,000, or a worst-case scenario with a collapse to $150.
Despite these warnings, some market participants remain optimistic, anticipating that Bitcoin might still reach new heights around $150,000, even amid recent volatility. Overall, the sentiment remains largely bullish, with Bitcoin trading above the $100,000 support level throughout much of 2025.
Comprehensive Bitcoin Price Analysis
As of the latest update, Bitcoin is trading at $110,889, reflecting a 0.5% decline over the past 24 hours and a 10% decrease over the past week. In the short term, maintaining support above the $110,000 level is crucial for Bitcoin to preserve hopes of challenging the $115,000 resistance.
Conclusion
While the cryptocurrency market continues to intrigue investors, Henrik Zeberg’s cautionary perspective serves as a reminder of the potential volatility inherent in Bitcoin. As the digital asset navigates its complex landscape, investors should remain vigilant and informed, balancing optimism with prudent risk assessment.
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