Bitcoin Evangelist Predicts Turbulent Year Ahead for Crypto Market

Bitcoin evangelist Stepan Gershuni shared his insights on market cycles and short-term prospects for digital asset holders on Facebook.

According to the expert, the first stage involves an intuition of an impending bull run. This is indicated by the slow growth of Ethereum and Bitcoin compared to figures from two years ago, the appearance of halving charts, and increasing Ethereum deflation.

“During a bull market, there are no innovations. Smart investors understand the need to move quickly. Smart startups know that in a couple of months, they can raise funds at double the valuation,” Gershuni wrote.

The second stage is the pump, which the market is currently experiencing. It is marked by the rapid rise of Bitcoin and Ethereum, sometimes reaching a new ATH, followed by the growth of other major cryptocurrencies by market capitalization. Then altcoins and shitcoins surge, increasing by 50% in price daily. 

During this period, retail investors become active, and hodlers “buy new cars.” 

“It is now obvious to the whole world that this is a bull run: countries are buying Bitcoin, selling gold, corporations are unveiling their ‘blockchain strategies,’ and DeFi companies are hiring en masse with salaries higher than OpenAI,” the expert described. 

The third stage, he says, is madness: with daily updates of ATH for Bitcoin and Ethereum, altcoins multiplying by 100 times in price. Bankers and startups easily attract funding, investments grow exponentially, and the market is filled with “blockchain clothing, decentralized Tinder, zk-video art, L3 solutions with three consensuses.” However, at some point, “all this stuff” suddenly bursts.

“Shitcoins become worthless, DAO hamsters empty out, NFT collections with a billion Midjourney images turn out to be unwanted. Scams are washed away again, leaving the essence. Finally, real products, business, and innovations can be pursued,” Gershuni explained.

He added that considering these cycles and the current market situation, cryptocurrency holders face “~12 months of turmoil.”

Earlier, analysts at JPMorgan predicted a Bitcoin correction to $42,000 post-halving.