Tim Draper Predicts Bitcoin to Reach $250,000 by Year-End

Investor and billionaire Tim Draper anticipates that the price of the leading cryptocurrency will triple to $250,000 by the end of the year.

“If I had to predict, perhaps by the end of the year we would see $250,000 [per bitcoin]. I mean, everything looks pretty good,” he noted.

According to the businessman, the current rally is fueled by increasing inflows into spot exchange-traded funds based on digital gold. Draper stated that investment products have opened new opportunities for investors who were hesitant to hold the asset themselves.

Access to ETFs allows investors to continue working with management companies like Fidelity or JPMorgan and trade the new asset class within a broader investment portfolio. Bitcoin also offers protection against the devaluation of national currencies, the billionaire believes.

Draper added that the limited supply of the coin and its growing adoption as a payment method will enhance the asset’s appeal to the masses:

“I really started to see the boundaries blur. People feel more comfortable with their bitcoins than with their dollars.”

The fourth halving of the reward for miners will also significantly impact market dynamics, so investors should consider the importance of this event, Draper warned.

“If you’re a stock market investor, you’re told: don’t bet against the Fed [Federal Reserve System]. If you’re a bitcoin buyer, don’t bet against the halving. It changes everything. Supply decreases, demand increases, and the price goes up. Natural economics,” he explained.

Draper pointed out that the income from the leading cryptocurrency is becoming a more attractive means of hedging against growing concerns about bank bankruptcies and the devaluation of national currencies.

Previously, the entrepreneur repeatedly forecasted bitcoin’s rise to the level he specified. In 2018, Draper predicted the asset’s price would reach $250,000 by 2022.

Later, he extended the timeline to early 2023, in November 2022 adding another six months.

In July 2023, the billionaire reiterated his prediction, pushing the deadline to 2025.

In September, he introduced the “venture studio” Draper Goren Blockchain, aimed at accelerating “DeFi innovations” through funding early-stage crypto projects.