Venture capitalist Tim Draper’s recent comments about Bitcoin (BTC-USD) at Paris Blockchain Week brought some much-needed bullish feelings to the cryptocurrency community. In an interview with Cointelegraph, Draper predicts that Bitcoin could reach $250,000 by the end of 2024, fueled by the dual catalysts of new spot Bitcoin ETFs in the United States and the upcoming halving event.
Draper’s optimism isn’t just about increased accessibility via ETFs, but also stems from Bitcoin’s fundamental economics. The halving event, scheduled for April 20, will cut the block reward for miners in half. After the halving, the new rewards for mining will be 3.125 per block. Analysts expect the reduction in released supply to drive BTC higher.
One key quote from Draper that is already circulating on social media goes: “If you’re an investor in the stock market, they say don’t bet against the Fed. If you’re a Bitcoin buyer, don’t bet against the halving. It changes everything.”
Protective Measures and Economic Stability
Draper also highlighted Bitcoin’s role in protecting against fiat currency devaluation and its fixed supply. Draper advised that even a small, single-digit percentage investment in Bitcoin could significantly enhance an investor’s financial stability. In other words, Draper advocates for Bitcoin ownership as a hedge against inflation and currency devaluations.
Bitcoin’s Price Action Over the Weekend
While bullish, Draper’s comments had zero effect on the selling pressure Bitcoin faced over the weekend. Fears of an Iranian attack on Israel caused a 4.06% loss for Bitcoin on Friday. These fears materialized on Saturday, with Bitcoin losing nearly 10% at one point before recovering the majority of those losses to close 4.71% lower.
Its performance on Sunday, however, was a breath of fresh air for bulls as it closed higher by 2.59%. Compared to the rest of the cryptocurrency market, Bitcoin’s overall performance was exceptional. Many altcoins, such as Cardano (ADA-USD), experienced intraday losses exceeding 20% on Friday and Saturday.
As of this morning, Bitcoin has returned to the $66k value area. Following other risk-on assets, Bitcoin is moving higher as fears of Iran’s attack on Israel have diminished.
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