4 - 6 minute read
Henrik Zeberg, a well-known macro economist, suggests that the Federal Reserve’s decision to halt interest rates hikes may precipitate a fresh altcoin season. Zeberg wrote on Twitter to his 106,900 followers that as markets continue to price-in the Fed’s pause on interest rate hikes, the crypto market may very well see an alt-season. The economist further indicates that markets have yet to exhibit enough greed to trigger the altcoin season.
In support of his argument, Zeberg shared a chart from Swissblock that demonstrated how the momentum of both Bitcoin (BTC) and Ethereum (ETH) has recently slowed down. Although BTC is experiencing a lull in momentum, the macro economist believes it may present a good “buy-the-dip opportunity” to bulls.
Zeberg also predicts that equities and risk assets would perform well in the coming months despite being short-term bearish on Bitcoin and cryptocurrencies. Furthermore, he anticipates BTC to rally alongside equity markets.
Last month, Zeberg warned investors of an incoming market crash, which he claims could be the worst since 1929. Nonetheless, the economist suggests that stocks will still rally significantly before the meltdown.
At the time of writing, BTC is trading for $28,127.
Zeberg’s insights suggest that investors should be prepared to capitalize on the dip in BTC in the coming weeks as the dollar index (DXY) gains strength. This pullback may offer excellent entry points for traders that are optimistic about BTC’s future price movements. However, it’s important to note that trading cryptocurrencies is a high-risk activity, and due diligence should be undertaken before making any investments.
What this means for traders
Zeberg’s expertise and analysis provide traders with critical insights into the crypto market’s future trends. As the Federal Reserve halts interest rate hikes and the dollar index gains traction, traders should be meticulous in tracking the deviation of crypto assets with inflation rates. As Zeberg indicates, the moment market greed kicks in, an alt-season could become a reality, and traders could profit significantly from this trend.
#ETH was strong this week, while #BTC was resilient in a low liquidity environment. Not enough to trigger a full-blown alt season.— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) April 6, 2023
Greed needs to kick in: capital flows to #BTC -> #ETH -> large -> mid -> small caps -> $SHIB
Uncharted territories👉 https://t.co/7yv1IMq56T pic.twitter.com/HqFz8lflUw
It’s also essential to consider Zeberg’s prediction of BTC rallying alongside equity markets. This could suggest that investors can hedge their investments by diversifying them across various markets. Nonetheless, it’s vital to do thorough research and understand the risks associated with trading these volatile assets.
Zeberg’s suggestions could spark significant optimism among investors as the crypto market looks to build its momentum heading into the coming months. Investors should pay attention to market trends, analyze data, and make informed trading decisions to capitalize on potentially profitable opportunities.