A closely followed economist believes crypto and the US stock market are still poised to witness a massive upside move despite the latest correction.

Henrik Zeberg tells his 147,900 followers on the social media platform X that it is not yet the time for crypto and stocks to collapse and enter a period of a sustained downtrend.

“Now everybody finds it easy to see, that markets can drop hard – and we will have a recession.

That was hard for some people a few weeks ago….

But this is not it….. yet!”

Earlier this year, Zeberg predicted that stocks and crypto would experience a blow-off top, or a period of extreme rallies, before imploding. Back then, he said the Fed would intervene and shore up the economy by printing money once signs appear that the US is headed to a recession.

With the S&P 500 witnessing a 3% correction on Monday – its worst sell-off since 2022 – Zeberg says his script is now playing out.

“Not top in US markets yet! But as I said in January – by mid-2024 we would start to see the cracks – and a recession should be pending. I stick to that!”

Zeberg says he now expects the Fed to step in and inspire marketwide rallies.

“Remember?

Largest recession and bear market since 1929!

But not yet… Now the ‘Cavalry’ will step in – which will create a strong bounce and new ATHs (all-time highs) in US markets.

…only it will not be enough.”

He also reiterates that the rallies will be steep for crypto with the asset class printing a bull market top in October of this year.

“Blow-off top will be extreme in certain markets – small caps and crypto – and euphoria will develop.

But – we are getting closer to the final top.”

At time of writing, Bitcoin (BTC) is trading for $56,015, up about 14% from Monday’s lows of $49,000.