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Two market analysts have said Tim Draper’s bold Bitcoin price prediction might not be as far fetched as it seems. The billionaire venture capitalist said recently that the leading digital asset would reach a price of $250,000 between six months and a year after the 2020 halving.
BKCM LLC’s Brian Kelly and Fund Strat’s Tom Lee both believe that Bitcoin will absorb capital from the gold market. The analysts are not sure that such a colossal figure is achievable is such a short space of time, however.
Analysts Agree: Draper’s $250,000 Bitcoin Isn’t Inconceivable
NewsBTC reported yesterday on billionaire investor Tim Draper’s most recent Bitcoin price prediction. Draper says that the digital currency will top $250,000 by the start of 2023.
Draper rationalised his position by stating that rising customer adoption of the digital asset would drive the stellar performance he forecasts. He also said that a growing distrust of the banking industry and financial system would contribute to Bitcoin’s growing appeal.
Appearing on CNBC’s Fast Money earlier today, two investment analysts have weighed in on the likelihood that Bitcoin can hit the high that Draper seems so sure about.
Founder & CEO of the digital currency investment company BKCM LLC Brian Kelly said that although the prediction sounds “bizarro”, Bitcoin is known for spectacular price runs, like those seen in 2013 and 2017. Kelly identified that Bitcoin has been trading within a channel since 2013. Extending that channel out to the end of 2022, the top is around the $250,000 per Bitcoin mark.
Kelly said that he agrees with the opinion of Draper and others that Bitcoin will absorb gold’s market share over the coming years. However, he added that he was not sure that the digital asset would reach the $4.5 trillion market capitalisation required to hit Draper’s predicted price by the start of 2023.
Could #bitcoin hit $250,000 in the next two years? @BKBrianKelly and @fundstrat's Tom Lee help us break down longtime venture capitalist Tim Draper's bold call. pic.twitter.com/dGW4nJL86f
— CNBC's Fast Money (@CNBCFastMoney) December 20, 2019
Next to weigh in on the Bitcoin price call was Fund Strat’s Tom Lee. Like Draper and Kelly, Lee is overall bullish on Bitcoin. However, he too is not sure about the tight time frame predicted by Draper. He said:
“I don’t know if 24 months is how long it would take… If it took 5 years, I think it would still be considered a huge, massive, surprising success.”
Looking slightly nearer into the future, Lee added that he was confident that an investment in Bitcoin would be the easiest way to make money from cryptocurrency during 2020. He said that regulatory uncertainty surrounding the industry will continue to diminish, inspiring confidence in investors, and that he thinks 2020 will be a better year than 2019 for the cryptocurrency. Given that Bitcoin started the year at around $3,800 and currently trades in excess of $7,000, Lee, like Draper, is clearly expecting some bumper returns on Bitcoin investments during 2020.
Related Reading: Bitcoin Exchange Outflow Spikes to $606M in 1 Day: Is Accumulation Starting?
Featured Image from Shutterstock.
