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Bitcoin Predicted to Reach $250,000 Thanks to Halving, ETFs & Women, Says Tim Draper

Published April 11, 2024 12:41 PM
Teuta Franjkovic
Published April 11, 2024 12:41 PM

Key Takeaways

  • Tim Draper predicts Bitcoin price will triple in 2024.
  • Spot ETFs attract new investors & Bitcoin’s halving fuels investor interest.
  • Previously, Draper credited women as being a driving force behind his $250,000 price target in 2024.

At the Paris Blockchain Week, notable venture capitalist Tim Draper shared his outlook on Bitcoin’s future, forecasting a significant surge in its value for the year 2024.

He attributed this potential increase to the influx of investments into spot exchange-traded funds (ETFs) and the anticipated Bitcoin halving event, but has previously said women and their spending habits could help.

Spot ETFs & Halving to Drive Triple Bitcoin Price by Year-End

Draper’s optimistic projection  is based on a combination of these influential market factors, suggesting a tripling in Bitcoin’s valuation within the next year.

Draper mentioned that, based on his assessment, the potential for Bitcoin to reach $250,000 by the year’s end looks promising, reflecting on his earlier prediction for 2022.

The introduction of spot Bitcoin ETFs in the United States has played a pivotal role in attracting new interest and investment into the Bitcoin space.

Draper highlights  these investment vehicles as a key factor in drawing investors interested in Bitcoin but hesitant about the complexities of direct ownership and self-custody.

Additionally, he views these ETFs as effective tools for investors looking to diversify their portfolios and protect their wealth from the depreciation of fiat currencies.

He said :

“I think that it gives people an opportunity to buy some Bitcoin and hold on to it so that they can take care of themselves when there’s a run on the dollar or the euro.”

Investors Leverage BTC ETFs for Managed Portfolio Diversification

Investors seeking to diversify their investment portfolios without stepping away from traditional fund management now have the option through Bitcoin ETFs.

This approach allows investors to stay with familiar fund managers at institutions like Fidelity or JPMorgan while incorporating the burgeoning asset class of Bitcoin into their broader investment strategy.

Draper points to Bitcoin’s capped supply and its growing acceptance as a means of payment as key factors enhancing its attractiveness. He contrasts this with fiat currencies, which face inflation and diminishing buying power.

Draper expresses a preference for Bitcoin over fiat currencies, which he perceives as losing value due to governmental actions and unchecked spending, seeing Bitcoin as a robust defense against inflationary pressures.

He stated :

“I think I’ve actually started to see the lines cross. People feel more comfortable with their Bitcoin than they do with their dollars.”

Bitcoin Adoption by Women Will Catapult Value Beyond $250,000

Tim Draper has previously articulated his anticipation for a significant uptick in Bitcoin’s value, attributing the potential surge to its adoption among women.

He envisages a future where “All the women will have Bitcoin wallets, and they will be buying things with Bitcoin,” leading to a price escalation that surpasses his $250,000 prediction.

This perspective underscores the impact of broadening Bitcoin’s user base and the potential for increased demand to drive up its market value.

Bitcoin’s Fourth Halving: A Pivotal Moment for Investors

The upcoming fourth Bitcoin halving, scheduled for April 20, is poised to significantly alter market dynamics, a development that Draper insists investors should pay close attention to.

Drawing a parallel to stock market wisdom, Draper advises, “If you’re an investor in the stock market, they say don’t bet against the Fed. If you’re a Bitcoin buyer, don’t bet against the halving.”

He highlights the basic principles of supply and demand to explain how the halving event, which reduces the supply of new Bitcoin. In contrast, demand remains constant or increases, naturally leads to a price increase.

Draper further advocates  for Bitcoin as a strategic hedge, suggesting that even minimal exposure to the cryptocurrency could serve as a safeguard against the backdrop of concerns over bank instability and the depreciation of sovereign currencies. This perspective underscores the increasing relevance of Bitcoin in diversifying investment portfolios amid uncertain economic conditions.

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