This Bitcoin bull believes the price will top $250,000 in 2023
Bitcoin bull Tim Draper expanded on his prediction about the price of the cryptocurrency. The venture capitalist and investor said the cryptocurrency would reach $250,000 by the end of 2022, but now he expects it to reach that level in mid-2023.
This year, the cryptocurrency and crypto market lost over 80% of its value and total market capitalization. A tightening macroeconomic landscape, a hawkish US central bank (Fed) and high inflation triggered the decline in the price of Bitcoin. Still, Draper believes two key factors will reignite the bull run.
Good news for Bitcoin, but bad news for Altcoins?
The venture capitalist is well known in crypto for buying Bitcoin at a US Marshals auction. At the time, the BTC price was hovering around $1,000. Draper predicted that in three years the price of the number one cryptocurrency would increase by 10 times and reach $10,000.
This prophecy was fulfilled and exceeded exactly three years later when the BTC price traded at $20,000. In an interview with CNBC, the venture capitalist said:
I have extended my prediction by six months. $250k is still my number. I expect a flight to quality and decentralized crypto like bitcoin and some of the weaker coins becoming relics.
The crypto has to overcome significant resistance to reach this number. In addition to a tighter macroeconomic environment, the collapse of the trading platform FTX and the hedge fund Three Arrows Capital (3AC).
The failure of these companies has negatively affected investor confidence. However, Draper believes that 2023 will see buying pressure for the cryptocurrency.
First, new users may jump into the market due to high inflation. Draper believes the imbalance between the number of men holding BTC versus the number of women will decrease.
Data provided by CNBC, according to a recent survey, indicates that 14% of men invest in digital assets against 7% of women. The latter will invest in Bitcoin as they realize its potential to increase profits and defeat inflation. Draper said:
Merchants will save approximately 2% on every purchase made in bitcoin vs dollars. When traders realize that 2% can double their profits, bitcoin will be ubiquitous.
The best years are yet to come for BTC
In addition, Draper claims that the upcoming Bitcoin Halving, set for 2024, will act as another bullish factor. In the past, this event has always preceded BTC’s next bullish cycle as demand for the cryptocurrency wanes while supply wanes.
High inflation and a lack of confidence in the old financial system will drive these two factors, Draper said:
Management of fiat is centralized and unpredictable. When a politician decides to spend $10 trillion, your dollars become worth about 82 cents. Then the Fed has to raise interest rates to make up for the spending, and the arbitrary centralized decisions create an inconsistent economy.
