As a result of Bitcoin’s outstanding performance in the first quarter of 2023, its early adopters were rewarded with a price increase of over 70%. Is this likely to start a bullish rally and possibly form a new all-time high?
In 2018, well-known investor Tim Draper predicted that the price of Bitcoin would reach $250,000 by 2022.
In a recent podcast, Draper and Scott Melker discussed the latest iteration of Draper’s forecast schedule.
Bitcoin prediction by Tim Draper
In a recent podcast discussion with Scott Melker, Tim Draper changed his Bitcoin price hike schedule. “I estimate $250,000 bitcoin. I expected it before June but it may be delayed
‘ Draper explained. “We’re running. It may happen. Three months before the halving I think,” he added.
Draper was referring to the upcoming “halving” event, which is expected to take place in April 2024. Mining rewards will be 50% lower during this event. He expects the price of Bitcoin to surge three months before the halving and reach $250,000 by early 2024.
Factors driving bitcoin price rise
Institutional adoption could push Bitcoin’s price higher. In recent months, MicroStrategy, Square, and Tesla have invested heavily in Bitcoin. This has legitimized bitcoin as an asset class and attracted institutional investors. Says Draper
“Institutional investors flocking to bitcoin…this is a big swing and it’s happening now.”
Another factor that could be driving Bitcoin’s price rise is its increasing mainstream adoption. The asset is gaining acceptance and numerous countries, including El Salvador, have legalized it. As more and more people use Bitcoin for daily transactions, its value may increase.
According to Draper
“I think we’re going to see a lot more countries start accepting bitcoin as a currency… I think the world will become a lot more bitcoin-friendly.”
Possible risks
Although Draper is optimistic about the future of Bitcoin, there are risks associated with investing in cryptocurrencies. The cryptocurrency market is very volatile, and the price of bitcoin could fall just as fast as it has risen. Additionally, regulatory risks could hurt the value of bitcoin as some governments are hostile to cryptocurrencies.
Despite the risks, Tim Draper’s Bitcoin prediction may not be as far-fetched as it once seemed. Bitcoin has come a long way since its inception, gaining increasing acceptance from both institutional and retail investors. Whether or not bitcoin hits $250,000 remains to be seen, but one thing is certain: the cryptocurrency is here to stay.
If you are considering investing in Bitcoin or any other cryptocurrency, it is important to do your research and understand the risks involved. However, if Tim Draper’s prediction holds true, early investors could make a substantial profit.
