Only last year $100,000 reaching up to $1 million predictions were quite famous in the market. John McAfee’s famous bet on year-end prediction for 2020, sets him up for an embarrassing situation. The founder of the internet security firm tweeted that he would eat his d*ck if the price of Bitcoin does not touch a $1 million by 2020 end.
Bitcoin [BTC] has mostly been in a bear market since July this year. Retail adoption has been quite slow. With a year left for his prediction, it seems unlikely that it will get there.
Nevertheless, the engagement by institutional investors and the resilience of old ones has managed to protect the bullish outlook.
The recent drop in Bitcoin [BTC] to $6400 tested support from the long term trend-line on a logarithmic scale. The trend has been bullish since 2015, even during successive bear markets the trendline briefly held above support.
According to leading VC Tim Draper,
It’s pretty likely that we’re gonna hit $250,000 by end of 2022 or early 2023 based on customer adoption of Bitcoin and I think it’s spreading.
Moreover, many mainstream traders and financial analysts are not completely shunning the bullish outlook. In a recent interview at CNBC fast money with Thomas Lee as the guest panelist, the analysts review the possibility of these claims.
Brian Kelly notes from the same logarithmic trendline that if Bitcoin continues its upward path $250,000 is not unrealistic. The traders unanimously agreed to the benefits of 1-2% allocation of their investment in Bitcoin. Furthermore, what looked like persuasion to buy Brian Kelly also mentioned that,
Even if it went to $14,000 you double your money. I’d be very happy with that.
Thoman Lee from Fudstrat notes,
When you look at this on a log basis, the idea that Bitcoin will get there would be consistent with the idea of generational trade. I don’t know if 24-months is how long it will take.
Now the crypto investors have adapted themselves to the massive volatility. Hence, while a bear 30x prediction still sounds like hogwash, investors are likely to believe it now that they were two years ago. On the timelines of the rise, the investors are still uncertain. 2020 has the potential to be a bullish year after the developments in 2019. However, according to Lee, even a 5-year timeline for the prediction makes it highly profitable.
When do you think Bitcoin might reach $250,000? Please share your analysis with us.