Analyst Tim Draper has this week lit a fire under Bitcoin enthusiasts. He has stated that Bitcoin at $250,000 is underrated and Bitcoin could achieve much more. According to him, there are many triggers that will easily see Bitcoin surge well above this position. Bitcoin will achieve more than this. Interestingly, he is not alone. Others like John McAfee expect that Bitcoin will have surpassed $250K long ago and rallied as high as $1 million.
While traders and holders are excited by this prospect, what is the real reason behind the Bitcoin at $250,000 and beyond predictions?
Why Bitcoin At $250,000 Is Possible By 2022
For analyst Tim Draper, the very basic reasons are inflation and government disruption. This is happening all around the world with different leading governments facing economic crisis. In the U.S and China, for example, they are locked in a trade war that has been affecting both countries. In addition to this, China is battling with pro-democracy protests in Hong Kong. This has disrupted governance and weakened the local economy. For the U.S, it is also facing a possible minor recession in the next year or so according to a number of economists.
In Europe, the situation is no better. There has been a growing concern over a slowing economy. This has pushed the European Central Bank to recently cut interest rates. This has seen the Euro weaken in a bid to revive the economy. This comes at a time when the block is going through a bitter divorce with Britain. This event, which is just around the corner is expected to disrupt not only Britain but the European block. This is especially if its a no-deal exit.
Further boosting Bitcoin’s rally in the next year is the upcoming reward halving. This has historically provided rocket fuel and seen Bitcoin surge to new highs. An ETF approval by the SEC is also still on the table in the months to come.
Given all these events and the fact that Bitcoin has long been a safe haven for investors in political and economic turmoil, it would warrant Draper’s remarks.
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