Renowned economist Henrik Zeberg has issued a stark warning, suggesting that a significant economic event not seen in nearly a century is poised to make a comeback in 2025. Speaking to his 140,700 followers on the social media platform X, Zeberg predicts that risk-on assets like stocks and cryptocurrencies will continue to surge in the coming months. However, he cautions that this bullish trend will abruptly come to an end towards the end of the year, just as market participants become excessively optimistic.

“The bull market, much to your dismay and confusion, has an expiration date – and it’s this year! We’re heading towards a blow-off top! Initially, US markets will experience a substantial surge, while cryptocurrencies and small caps will also soar as investors rotate away from large caps and foreign markets. Euphoria will grip everyone, and they will once again put their trust in the Federal Reserve (Fed), believing that they have our backs. But come the end of the year, a major recession will set in.”

According to Zeberg, the Fed will attempt to support the economy by implementing monetary stimulus measures, such as printing money to promote growth. However, he argues that these actions will only delay an inevitable economic collapse, which will eventually lead to stagflation – a period marked by sluggish economic growth, rising unemployment, and high inflation.

“Yes, the Fed will intervene, but all they will achieve is a temporary boost in the markets. They will implement monetary stimulus as a recession and deflation loom over them. Their actions will only offset stagflation! As a result, we will witness the largest recession and bear market since 1929, occurring in two stages – first deflation, then a bounce, and finally stagflation.”

In January 2023, Zeberg accurately predicted that the stock market would reach record highs before experiencing a sudden crash. At the time, the S&P 500 was trading at around 4,000 points, and Bitcoin was valued at nearly $20,000. As of now, the S&P 500 sits at approximately 5,321 points, while BTC is trading at $70,150.

It is important to note that the opinions expressed by Zeberg are not investment advice. Investors are strongly advised to conduct thorough research before engaging in high-risk investments involving Bitcoin, cryptocurrencies, or digital assets. All transfers and trades are undertaken at the investor’s own risk, and any resulting losses are their sole responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, and it is not a registered investment advisor. Additionally, The Daily Hodl engages in affiliate marketing.