X-Mas Bitcoin Rally Expected to Reach New Heights, Economist Henrik Zeberg Reveals – With a Warning

• Top market analysts hinted that Bitcoin still has more upside amid the recent selloff.
• Altcoin rally is imminent as Bitcoin dominance may fall soon.

Bitcoin (BTC), the world’s leading cryptocurrency, has declined by over 10% since the beginning of the week. Despite this decline, Economist Henrik Zeberg is optimistic about the flagship cryptocurrency.

Henrik Zeberg Says Christmas Rally Still On for BTC

“CHRISTMAS RALLY IS STILL ON,” Zeberg wrote in a post on social media platform X. 

The economist claims Bitcoin is poised for further uptrends. As a result, he forecasted that  Bitcoin would surpass the current record high of over $108,200 and hit a new all-time high. 

CHRISTMAS RALLY IS STILL ON! #BTC will see new ATHs.

We are not at the top yet.

BUT – we are much closer to the top and the rally will not continue for as long as many analysts seem to believe.

See my Daily chart for #BTC here with top and potential path:… pic.twitter.com/8YLDp6ygJ7

— Henrik Zeberg (@HenrikZeberg) December 19, 2024

However, Zeberg cautioned that the impending BTC surge will only last briefly, defying analysts’ longer-term projections. “BUT – we are much closer to the top, and the rally will not continue for as long as many analysts seem to believe,” says Zeberg.

Bitcoin is currently trading at $95,340, demonstrating a decline of 4.3% and 4.8% in the last 24 hours and week, respectively.

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The economist predicted that after Bitcoin reaches the cycle top, it may fall by almost 84% from its current level. He said Bitcoin could drop to approximately $16,000 after the blow-off top.

In another X post, the economist claims altcoins are poised for a huge surge as the Bitcoin dominance falls. For context, Bitcoin dominance is a metric used to measure Bitcoin’s relative share in the overall crypto sector. It indicates the ratio of Bitcoin’s total market capitalization to the total market capitalization of all cryptocurrencies combined.

An increase in Bitcoin Dominance usually means the market is more cautious, with investors taking fewer risks. Bitcoin’s price is often more stable during this time, whilst altcoin values are under pressure. The reverse is, however, the case when the Bitcoin Dominance metric declines.

According to Zeberg, the emergence of the altcoin season will create extreme euphoria in the crypto market. However, he opined that this is the final blow-off phase, which will span several weeks. After this phase, the economist claims the main bear market will begin.

Bitcoin ETFs Records Largest Single-Day Outflows

The spot Bitcoin Exchange-Traded Fund (ETF) market is having a bad day. Farside Investors data shows that Bitcoin ETFs have experienced their biggest net outflow since their debut in January.

On Thursday, December 19, 2024, the spot Bitcoin ETF recorded total outflows of $671.9 million. Fidelity’s FBTC recorded the largest outflows, at $208.5 million. On the other hand, BlackRock’s IBIT ETF remained steady, showing zero net flows.

This abrupt shift disrupts the pattern of consistent inflows. The Bitcoin ETFs recently experienced a 15-day streak of inflows, even hitting a new milestone with total BTC holdings. Per a CNF report, these ETFs collectively possess 1.1 million BTC or around 5.2% of Bitcoin’s total 21 million supply.

Overall, the huge outflows from Bitcoin ETFs reflect how the market copes with volatility and fluctuating investor sentiment.