- Crypto investor and venture capitalist Tim Draper predicts that Bitcoin’s price is headed to infinity and beyond – with sights set on a USD $10M target.
- Draper argues that the halving event will have a massive impact on supply and demand metrics, resulting in exponential gains.
- Additionally, the introduction of spot Bitcoin ETFs has further legitimised the sector and may be the stepping stone for institutions to become engrossed in the industry.
I’m sure we’ve all heard the saying “Bitcoin to the moon”. In most people’s minds, “the moon” here is probably referencing a hefty price point of ~USD $150-200K. So when someone gets on their soap box and predicts Bitcoin hitting USD $10M (AUD $15.56M), you can’t help but think their sights are set on Pluto and beyond, moreso than the moon. But that’s exactly what venture capitalist Tim Draper did on the eve of the Bitcoin halving last weekend. And no matter how ludicrous an eight-figure BTC price may seem – Draper has form on hitting some of these outlandish predictions.
BTC to $10K in 2017 Just the Beginning
Draper’s previous best call came nearly a decade ago (terrifying to say) when he predicted that Bitcoin would brush past USD $10K (AUD $15.56K) in 2017 following the halving – which it did with aplomb, kickstarting a bull run that broke into the mainstream’s attention.
Related: Bloomberg Reports Hong Kong Spot Bitcoin ETFs Likely to Exclude Mainland Chinese Investors
And now Draper believes that $10K will end up being little more than a speck along Bitcoin’s run to USD $10M. There are several factors behind such a bullish prediction – but they mostly boil down to supply and demand. As we know, the Bitcoin halving is set to cut the block reward for miners in half, restricting the amount of new BTC entering circulation. This has traditionally resulted in new Bitcoin all-time highs, as demand eventually outpaces supply.
Okay, makes sense so far. But Draper argues that the supply squeeze has been exacerbated by the introduction of spot Bitcoin ETFs. The uptake of products like BlackRock’s IBIT has seen institutions racking up hundreds of thousands of Bitcoin, leaving even less on the table for other investors. The result? Bitcoin funds being traded on the US stock exchange has served to hasten BTC’s rise to mainstream adoption.
If the price rise continues (due to supply and demand conditions), Draper believes there’s a chance that BTC will become too good to ignore for governments and most financial institutions. Soon after, it could become the de facto store of value across investors. If this happens, Draper suggests the USD could eventually become devalued – something that many anti-crypto spokespeople fear.
All of this might be a little (okay, more than a little) on the optimistic side. But Bitcoin’s only just starting to settle from the two biggest events of the year. If now isn’t the time for outlandish predictions, when is?
So, what do you reckon? Is BTC going to Pluto?
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