Bitcoin (BTC) and cryptocurrencies will need at least until 2024 to “recover from abuses by unscrupulous actors,” says one of the best-known names in the industry.
In a blog post published on Dec. 30, David Marcus, CEO and founder of Bitcoin startup Lightspark, disappointed bulls with his outlook for the next few years.
Marcus: “Crypto Winter” Will Probably Last Until 2025
Less than two months after the FTX crash, the fallout continues to roil both sentiment and price action.
For Marcus, famous for his role in the cryptocurrency sector at Meta and before that for his stint at PayPal, the bad actors have a lot to answer for, and their specter will remain in the cryptocurrency industry even beyond 2023.
Although he only mentioned FTX once, he referred to what he called “rogue dealers” dragging market underperformance even beyond next year.
“We will not get out of this ‘crypto winter’ in 2023, and probably not in 2024 either,” he summarized.
“It will take a couple of years for the market to recover from the abuses of rogue brokers and responsible regulation. Consumer confidence will also take a few years to rebuild, but ultimately I think this will pay off in the long run. for the legitimate agents of the sector”.
If hodlers were to wait for their silver linings, this could further upset the historical patterns that Bitcoin in particular has adhered to throughout its existence.
In particular, its four-year halving cycles, which tend to produce growth in specific years, may be challenged. 2024, the year of the next halving, is increasingly shaping up to be a bullish period, although some predict that the bullish trend will start a little earlier, in the second quarter of 2023.
However, even if the recovery takes longer than expected, Marcus believes that once it does, there will be a new and stronger industry.
“In the crypto space, years of greed will give way to real world applications,” he continued.
“Gone are the years of creating a token out of thin air and making millions. The music has stopped. We are back to our regular schedule of having to create real value and solve real world problems.”
He spared particular attention to Bitcoin’s Lightning Network, which he said “will start to show promise as the world’s most efficient open, interoperable, cheap, and real-time payments protocol.”
Optimism fades in the final stretch of the year
As Cointelegraph reported, other big names have also come out in support of the crypto market’s long-term prospects after the FTX crash.
Among the most notorious is the investment giant ARK Invest, whose CEO, Cathie Wood, did not mince words when it came to reacting to the events of nearly two months ago.
“Bitcoin’s blockchain didn’t stop for a moment during the crisis caused by opaque centralized players. No wonder Sam Bankman Fried didn’t like Bitcoin – it’s transparent and decentralized. He couldn’t control it,” said one Tweet widespread in mid-December.
Regarding price developments, opinions remain divergent on how the first quarter of 2023 might unfold.
Some believe the worst of the last Bitcoin bear market is over, while others continue to warn of a deeper BTC price drop to $10,000 or below.
The BTC/USD pair traded around $16,500 on Dec. 31, data from Cointelegraph Markets Pro and TradingView showed, and continues to avoid major volatility within hours of the close of the 2022 annual candle.
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