In brief:
- Tim Draper has rekindled his $250k price prediction for Bitcoin
- He expects Bitcoin to hit this value by the end of 2022
- He cites that unlike three years ago, Bitcoin looks more likely to hit his target
- Bitcoin is currently defending the $50k support zone as traders digest the news of Blackrock ‘dabbling’ into BTC
Popular Venture Capitalist and Bitcoin bull, Tim Draper, has once again rekindled his $250k Bitcoin price prediction with a new timeline. Mr. Draper shared his analysis of Bitcoin via Twitter where he also explained that this time around, Bitcoin had the ability to hit this target by the end of 2022. Below is his tweet reigniting his $250k Bitcoin price prediction.
$250k by end of 2022. Just 5X from here. Looking a lot more likely than when I made the initial prediction three years ago, eh? #Bitcoin
— Tim Draper (@TimDraper) February 17, 2021
Bitcoin Thrives Due to Tesla’s $1.5B Purchase of BTC
Mr. Draper’s prediction might come to fruition given the massive momentum BTC has had since Tesla announced that it had added $1.5 Billion in Bitcoin to its balance sheet. Popular Bitcoin bull, Anthony Pompliano, earlier today, pointed out that Tesla was now $725 million in profits since the company bought Bitcoin. Furthermore, this value is equivalent to Tesla’s annual profit as explained below by Pomp.
Tesla reported $721M in profit last year.
They’ve already made ~$725M off their Bitcoin investment.
Elon Musk is a legend.
At the time of writing, Bitcoin is trading at $51,400 in what looks like a minor retracement from the most recent all-time high of $52,600. Chances are, more institutions are buying every Bitcoin dip due to the actions of Elon Musk via Tesla. Therefore, Bitcoin can achieve Mr. Draper’s $250k prediction by next year if the current momentum is maintained.
Blackrock Dabbles in Bitcoin
Additionally, Bitcoin’s bullish momentum received another boost from Blackrock’s Rick Reider, announcing that the investment firm had ‘dabbled in Bitcoin’. Mr. Reider made the statement during an interview on CNBC’s Squawk Box, where he shared the following.
Today the volatility of it is extraordinary, but listen, people are looking for storehouses of value. People are looking for places that could appreciate under the assumption that inflation moves higher and that debts are building, so we’ve started to dabble a bit into it…
We’re holding a lot more cash than we’ve held historically…It’s because duration doesn’t work, interest rates don’t work as a hedge and so diversifying into other assets makes some sense. Holding some portion of what you hold in cash in things like crypto seems to make some sense to me, but I wouldn’t espouse a certain allocation or target holding.
To note is that Blackrock handles over $8.67 Trillion in assets and such an indirect endorsement of Bitcoin, is very bullish for BTC.
