Tim Draper Maintains His $250K Price Call for Bitcoin by Mid-2023
Billionaire investor and Bitcoin (BTC) bull Tim Draper has made a $250,000 price call for the premier digital currency, maintaining his stance on how bright the future of the cryptocurrency is. Draper previously predicted that the price of Bitcoin will top the said amount by the end of this year, however, at the current level of $17,300, the coin is almost 1,400% away from that projected price level.
Acknowledging that this year is already gone, Draper said he is extending his timeline by 6 months until next year June.
“I have extended my prediction by six months. $250k is still my number,” Draper told CNBC.
Draper is one of the few mainstream investors that has taken a profound likeness for Bitcoin over the past decade. His first major dive into the digital currency came when he won the auction for 29,656 BTC units that were confiscated by the United States Government from the dark web marketplace, Silk Road in 2014.
At the time, Tim Draper paid $18.7 million for the coins and he predicted that within three years, the coins will top $10,000 in price. This prediction came to pass as the price of the asset surged to $20,000 in December 2017.
Since that initial surge, Bitcoin has recorded immense volatility, positively compounded by growth toward a new All-Time High (ATH) above $68,000 in November 2021. The coin has dropped by more than 60% this year, underscoring the macroeconomic turmoil and ecosystem headwinds that were faced by key players in the industry.
From the collapse of Terraform Labs and its associated LUNA and UST coins to the bankruptcy of Three Arrows Capital and finally, the bankruptcy of FTX Derivatives Exchange, all hopes of recording a bullish price growth this year were remarkably dampened.
Tim Draper Justifies His Bitcoin Price Prediction
For Tim Draper, Bitcoin has a lot of fundamentals that are capable of powering its growth over time. He noted that the dam is about to break with respect to the demography embracing digital currencies. He believes when more women start investing in the asset as much as men, then the narrative will change in a considerable manner.
“My assumption is that, since women control 80% of retail spending and only 1 in 7 bitcoin wallets are currently held by women, the dam is about to break,” He said.
Draper also noted that the decentralized management model of BTC is also a very unique reason why many investors will be willing to back the digital currency in no distant time.
“Management of fiat is centralized and erratic. When a politician decides to spend $10 trillion, your dollars become worth about 82 cents. Then the Fed needs to raise rates to make up for the spend, and those arbitrary centralized decisions create an inconsistent economy,” he added, pointing out how this is not how Bitcoin or cryptocurrencies operate in general.