- Bitcoin has experienced an extreme rally since the October lows, rising from $11,000 to (currently) $28,100.
- Tim Draper believes BTC could reach $250,000 in the next two years.
Bitcoin could grow tenfold from here
Bitcoin has seen an extreme rally since the lows in October and has risen to $28,100 at the time of writing. A few hours ago, BTC peaked at $27,900, but could rise even further in the coming days as Wall Street gets back to work.
Tim Draper, a longtime venture capitalist, believes BTC still has room for growth in the long run.
He wrote on Twitter, “He thinks bitcoin will go up tenfold from here by the end of 2022 or early 2023. That means he thinks bitcoin could reach $250,000 in the next two years.
Draper has long expressed this opinion in interviews and on social media channels. He made his first purchase of Bitcoin many years ago, when the coin was selling for hundreds apiece as part of the Silk Road sale.
He believes Bitcoin Trader will rise to that level over time as the leading cryptocurrency proves itself as a payment network. Draper is a proponent of the Lightning Network, arguing that the scaling solution will give Bitcoin an edge over traditional payment networks in the coming years.
Draper is a prominent Silicon Valley venture capitalist who has invested in companies such as Skype, Coinbase, Baidu, SpaceX, Tesla and many more. His net worth is estimated to be around $1 billion.
He’s not the only one who thinks this way
He is far from the only analyst who expects bitcoin to move to $250,000 and beyond in the coming market cycle. Scott Minerd, the global CIO at Guggenheim Investments, believes Bitcoin (Buy Now? Go here for guidance) could reach $400,000 in the coming years – due to its scarcity and ability to potentially take market share from gold.
Guggenheim Investments is a prominent investment firm based in the United States. The firm manages billions of dollars worth of assets and publicly announced that it has made allocations to bitcoin in the last two months.
Minerd in the Bloomberg interview:
“Our fundamental work shows that Bitcoin should be worth about $400,000. That’s based on scarcity and the relative valuation in things like gold as a percentage of GDP.”
While he is the first Wall Street executive to make such a lofty prediction, there are now many other mainstream proponents of the cryptocurrency.
For example, the new U.S. Senator for Wyoming, Cynthia Lummis, is a Bitcoin supporter. By her own admission, one of her main priorities is to convince her congressional colleagues that BTC is valuable as an investment.