Bitcoin (BTC) peaked at $ 10,000 in February, before falling below $ 4,000 last month when investors and financial markets responded to the coronavirus pandemic. Despite the slump and ongoing macroeconomic turmoil, billionaire Tim Draper remains optimistic about the leading cryptocurrency.
In an interview with Chinese news channel Bitpush, Draper, who heads venture capital firm Draper Fisher Jurvetson, warns that prolonged isolation from widespread lockouts threatens to worsen the disease-related financial crisis. He also shares his thoughts on the forecast V-shaped economic recovery that the United States could quickly recover from its current slump:
If the government keeps people isolated at home for two more weeks, the V-shaped economic trend discussed by everyone will not occur, and the recession could be worse than the virus at the time.
For investors moving in volatile stock markets, Draper doesn’t think it’s the best time to buy US stocks. But that’s not his position on Bitcoin. The billionaire says he is behind his long-term forecast that the “royal coin” is on the way to reaching $ 250,000 by 2022 or early 2023, despite the pandemic and the “black swan” event that crashed the markets . While crypto-enthusiasts are expecting bitcoin halving in May, which will halve the supply of new BTCs from 12.5 to 6.75 BTCs, and driving a bull run, Draper says the event is only half the story.
If the U.S. dollar is losing value due to large-scale money printing in the United States and people know that gold is no longer worth buying, then Bitcoin is a safe haven.
The crypto investor also sees a silver lining on the horizon in the current situation. During a bull market, Draper said, people aren’t usually open to change, but the current pandemic is driving change in habits as people look for better, cheaper, and faster alternatives in banking, healthcare, and other industries. He believes the crisis could trigger the introduction of new technologies like blockchain, smart contracts and bitcoin.
Once people realize that the government is saving the market by devaluing fiat currencies, they will begin to accept the use of bitcoin. People will recognize that Bitcoin is more open, transparent, smooth, valuable, and replaceable than the U.S. dollar, peso, naira, or the drachma.
Tone Vays also expects further recovery
Crypto trader and technical analyst Tone Vays says he is optimistic about Bitcoin as the halving is getting closer. In a new episode of “Trading Bitcoin,” Vays says Bitcoin’s current price action could be similar to August 2015, when BTC fell to $ 207 before starting a long-term rally that peaked years later than the leading one Cryptocurrency hit its all-time high of around $ 20,000. Vays says he was surprised by Thursday’s rally, which brought BTC from $ 6,214 to a high of $ 7,040. At this point, Vays says it will be important to keep track of whether Bitcoin’s price can move above its 200-day moving average, which is currently around $ 8,000, over the next two months.
Let’s see what happens in about two months. And guess what will happen in these two months. The halving. We just have to get above that 200-day moving average.