Crypto bull and venture capitalist Tim Draper has disclosed that it could take a little longer for his Bitcoin price target of $250,000 to be reached.
Speaking to Yahoo Finance, Draper said that while Bitcoin price could still reach $250,000 by 2022, he was not restricting himself to that timeline as the target might instead be achieved in the first quarter of 2023:
$250,000 by 2022, and I’m hedging a little… maybe Q1 2023. But I have the feeling… maybe Q1 2023, I’m going to go as far as that. But it will be $250,000 before that.
Regarding Bitcoin’s recent price movements and market dominance relative to other cryptocurrencies, Draper expressed surprise saying it had ‘consolidated more than I thought it would’.
Bitcoin dominance approaches 70 percent
Per the crypto bull, he had been expecting Bitcoin’s dominance to fall and other cryptocurrencies to take up a larger share. Draper attributed this dominance to the fact that Bitcoin is ‘decentralized’ while many other cryptocurrencies in the space are the exact opposite. Currently, Bitcoin dominance is at 69.4 percent, up by nearly 20 percentage points since April.
The venture capitalist also highlighted the dilemma that exists between holding Bitcoin especially now that it is increasingly being viewed as a safe haven and using it for day-to-day transactions due to the opportunity cost in the event that it appreciates.
After disclosing that he is the first client of the newly opened New York boxing gym Grit BXNG (that he has also invested in) to pay using Bitcoin, Draper revealed that he was a ‘little reticent’ to do it. This is because of the potential of Bitcoin’s price to rise dramatically in future as it becomes more widely accepted as a safe haven when traditional assets are cratering.
Will Draper be proved wrong this time?
The Bitcoin permabull first projected that the cryptocurrency would hit the $250,000 mark last year after it had hit a record high months prior. While there were many other crypto bulls making similar predictions at the time, part of the reason Draper was taken seriously was his track record.
Four years ago when Bitcoin was still a novelty, the venture capitalist had projected that the cryptocurrency would reach $10,000 by the close of 2017. At the time was trading at well below $500.
Two years after making the prediction, Bitcoin went on to hit $10,000 and nearly double the target in exactly the year Draper had predicted.
Last modified: March 4, 2021 2:39 PM