Optimistic views have been raised that the cryptocurrency market still has significant room for growth. Global macro strategist Henrik Zeberg predicted that the current total market capitalization of approximately $3.9 trillion could expand up to $12 trillion at the end of the current cycle. This represents a nearly 400% increase, which would be the largest single-cycle growth in cryptocurrency market history.
Zeberg based this forecast on the Elliott Wave Theory. He analyzed that the market has entered its fifth and final upward wave phase, characterized by accelerating capital inflow and increasingly optimistic investment sentiment. He specifically proposed a market capitalization range from $8.96 trillion to $12.81 trillion, indicating a higher likelihood of reaching the upper limit.
He also noted that the cryptocurrency market shows stronger relative strength compared to the Nasdaq tech stock index. Bitcoin (BTC) has consistently outperformed Nasdaq in both correction and rally phases, which is linked to new institutional investor inflows and increased corporate BTC holdings. Additionally, he warned that considering persistent inflation concerns and potential balance sheet recession risks, the price bubble could collapse rapidly after reaching its peak.
So how does Zeberg recommend navigating this market? He advises a strategy of "riding the strongest wave while boldly exiting before the peak approaches" - a macro momentum investment approach designed to prevent short-term investors from suffering losses at the market's highest point.
If his prediction materializes, this would represent a market capitalization increase of approximately $8.1 trillion compared to current levels. This would be an unprecedented expansion and potentially mark a significant turning point for global financial market participants.
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