Tim Draper, a well-known proponent of Bitcoin, made one of the most optimistic price predictions for 2022, stating that he believed the cryptocurrency would reach $250,000 by the end of the year. However, in November, the billionaire venture capitalist extended the timeline for this prediction to mid-2023. Despite the collapse of FTX, Draper remains convinced that Bitcoin will reach this quarter-of-a-million milestone.
“My assumption is that since women control 80% of retail spending, and only 1 in 7 Bitcoin wallets are currently held by women that the dam is about to break,” Draper told CNBC in an email. For Bitcoin to reach this value, it would need to experience a rally of 1,400%.
Despite the current depressed prices and decreased trading volume, Draper believes there is reason to believe that the market may have found a bottom. He suspects that the halving in 2024 will have a positive effect…
The halving, or halvening, is a recurring event in which the rewards given to Bitcoin miners for verifying transactions and minting new tokens are cut in half. This is seen by some investors as a bullish development for Bitcoin’s price, as it reduces the supply of new Bitcoins. The next halving is expected to occur in 2024.
As Bitcoin prices have slumped and energy costs have risen, miners who use power-intensive machines to mine Bitcoin have faced financial challenges. These miners often accumulate large amounts of the digital currency, making them significant sellers in the market. With miners selling their holdings to pay off debts, this can help to reduce the remaining selling pressure on Bitcoin.
Vijay Ayyar, Vice President of Corporate Development at the crypto exchange Luno, pointed out that in the past, miner capitulation has often signaled a major bottom in the market. When the cost of production becomes higher than the value of Bitcoin, you see a number of miners either shutting down their machines or selling more Bitcoin to keep their businesses afloat, Ayyar said. “If the market can absorb this miner sell pressure, it could be a sign that we are in a bottoming period.”
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