Tim Draper Predicts Halving and Bitcoin ETFs Will Boost Demand
Tim Draper, a venture capitalist, claims that Bitcoin is still a critical hedge against devaluing fiat currencies.
A famous venture capitalist, Tim Draper, believes Bitcoin’s value will triple this year as inflows into spot exchange-traded funds (ETFs) and the imminent Bitcoin halving.
Draper spoke to the media during Paris Blockchain Week, during which he echoed his belief that the crypto firm’s value would rise considerably based on various factors in 2024. Reflecting on his earlier price prediction for 2022, Draper said that they could probably see $250,000 by the end of 2024 if he were to forecast.
Spot Bitcoin ETFs Approval Key to Draw Interest
Spot Bitcoin ETFs’ approval in the U.S. has been a crucial driver of capital inflows and renewed interest in the Bitcoin network. According to Draper, the investment products have introduced another avenue for Bitcoin-interested investors who might be intimidated by the possibility of holding Bitcoin in self-custody.
Additionally, the products act as a hedge fund against devaluing fiat currencies. He noted that it offers individuals a chance to purchase some Bitcoin and hold on to it to allow them to take care of themselves in case of a run on the euro or dollar.
Draper also noted the appeal for investors who prefer their respective fund managers to keep managing their collections. Access to a Bitcoin exchange-traded fund permits investors to keep partnering with JPMorgan and Fidelity and have the new asset category managed as part of their broader investments.
Bitcoin Rising Adoption Critical to Post-Halving Rally
According to Draper, Bitcoin’s fixed supply and rising adoption as a payment option for services or goods would boost its attraction to the masses. Concurrently, fiat currencies contend with reduced buying power and inflation.
Draper said holding on to fiat currency, whose value reduces over time due to government spending or political whims, is unnecessary. He also claimed that Bitcoin is still a ‘place of significant security’ against inflation.
In this case, he said he has begun seeing the lines cross. Individuals are more content with their Bitcoin compared to how they feel with dollars.
Fourth Halving to Impact Market Dynamics
The fourth Bitcoin halving will considerably impact market dynamics. It is planned for April 20, and Draper notes that investors must not underrate it. He said stock market investors should always not bet against the United States Federal Reserve.
Bitcoin buyers are told to avoid betting against the halving. The supply reduces, and the demand and price increase are natural economics.
Draper also stressed his belief that possessing a single digital percentage exposure to Bitcoin has become an attractive strategy for hedging against increasing concerns regarding bank failures and the devaluation of self-governing currencies.
