Bitcoin rallied to a record high on Binance at $75,407 as markets cheered Donald Trump’s re-election, which was against Kamala Harris. The excitement in the crypto market comes the promise of Trump to become an asset Bitcoin, dumping SEC Chairman Gary Gensler, promoting pro crypto policies.
Most analysts think that a Harris victory would send Bitcoin down for a short period, but Trump’s stance has intensified bullish predictions. Economist Henrik Zeberg warns of caution, despite the market enthusiasm.
Trump’s Tariffs May Spark Bitcoin Surge And Economic Downturn
Trump’s draft economic policies including the purported tariffs he says will prod domestic growth may backfire, ushering in a recession, he warns. Zeberg compares his conclusions to the Smoot-Hawley Tariff Act of 1930, a plan often mentioned as compounding the Great Depression through sparks of retaliatory tariffs and limiting world trade.
He subsequently tweeted on X ‘Now things are all lined up for history to repeat itself…pop the greatest bubble ever. Based on Zeberg’s analysis, if Bitcoin demonstrates strength, it might briefly soar to a target of at least $115,000 to $123,000.
Fibonacci extension levels is an aspect of technical analysis within which the movement of the price is calculated based on historical data. Zeberg sees a critical top for Bitcoin, his prediction is 1.618 Fibonacci level, set at $114,916.16.
These include key resistance points at the 0.382 level ($77, 437.88), 0.618 level ($85,205.47) and the 1.0 level ($107,435.71) and a final figure of 1.27 at $123,148.19 hinting at an overshoot beyond that level.
Along Zeberg’s chart an annotation: “58% in less than 3 months into the top?” makes one wonder how fast Bitcoin has been shooting up in prices as we’ve been used to be in the past. Given the warning outlook of Zeberg, he expects a speedy rise, before a big market pullback, in a belief that a Bitcoin price peak will set up a huge correction as economic policies unfurl.
