Crypto Bubble to Peak at $12.95T, Then Collapse: Zeberg
Macroeconomist and analyst Henrik Zeberg warns that the crypto bubble is inflating toward a peak of around $12.95 trillion by late 2025 or early 2026, before experiencing a sharp collapse. Drawing on past cycles in 2017 and 2021, Zeberg highlights a rising wedge formation—a bearish technical signal—suggesting the end of the current uptrend. His projection shows the crypto market value plunging to about $93 billion from roughly $4 trillion today. While acknowledging possible short-term gains under the crypto bubble scenario, Zeberg urges investors to exercise caution and use historical boom-and-bust data and key technical indicators to manage risk effectively.
Bearish
Zeberg’s prediction of a crypto bubble peak followed by collapse signals a bearish outlook. Similar bearish wedges presaged the 2018 and 2022 downturns, where market values fell by over 80%. Short-term trading may benefit from volatility spikes around the projected peak, but long-term holders face heightened risk of steep losses. Traders typically reduce leverage and secure profits when rising wedge patterns emerge, echoing moves seen after the 2017 and 2021 peaks. Overall, warning of a collapse at 12.95 trillion triggers sell-side pressure, likely dampening bullish sentiment and increasing market volatility. In the longer run, this cautious stance may lead to a consolidation phase, as investors reassess valuations and risk management strategies.