The founder of Draper Associates Tim Draper has predicted that bitcoin would top $250,000 by the end of 2022
The Venture capitalist thinks bitcoin will hit $250,000 a coin by the middle of 2023, even after a bruising year for the digital currency marked by industry failures and sinking prices.
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He reaffirmed this position at the Web Summit tech conference in Lisbon, where he said it would take until June 2023 for this to materialize.
“I have extended my prediction by six months. $250k is still my number,” Draper opined via email.
Bitcoin would need to rally nearly 1,400% from its current price of around $17,000 for Draper’s prediction to come true. The cryptocurrency has plunged over 60% since the start of the year.
Digital currencies are in the doldrums as tighter monetary policy from the Fed and a chain reaction of bankruptcies at major industry firms including Terra, Celsius and FTX have put intense pressure on prices.
FTX’s demise has also worsened an already severe liquidity crisis in the industry. Crypto exchange Gemini and lender Genesis are among the firms said to be impacted by the fallout from FTX’s insolvency.
Last week, veteran investor Mark Mobius said that bitcoin could crash to $10,000 next year, a more than 40% plunge from current prices. The co-founder of Mobius Capital Partners correctly called the drop to $20,000 this year.
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Nevertheless, Draper is convinced that bitcoin, the world’s largest cryptocurrency, is set to rise in the new year.
“I expect a flight to quality and decentralized crypto like bitcoin, and for some of the weaker coins to become relics,” he said.