In a January interview with Forbes, venture capitalist Tim Draper said bitcoin would reach the staggering $250,000 mark within a year. At the time, bitcoin was trading at about $41,000 per coin.
Clearly, Draper’s prediction is not going to come true. From the $47,000 mark reached on New Year’s Eve, bitcoin has fallen to $20,000 by now. Tim is one of four crypto tycoons whose losses as a result of the cryptocurrency market crash are in the billions of dollars, yet the ex-billionaire’s beliefs remain unshaken.
A Forbes reporter reconnected with Tim Draper about his previous prediction, and the former cryptocurrency billionaire reiterated that he is 100% confident that bitcoin will reach the $250,000 mark:
I am more convinced than ever that it will happen by the end of 2022 or early 2023.
After a sharp drop from $32,000 amid a bear flag breakout, the downward trend in bitcoin prices has temporarily weakened. Strong support is provided by a range of 2017 historical highs between $17,000 and $20,000, which is encouraging the price to return to a large resistance at $24,000 or perhaps even $30,000.
There has been a prolonged downtrend in the market over the past few months, and the price collapse that occurred has had a significant impact on investor sentiment.
The mood is absolutely pessimistic, and it is accompanied by negative funding rates in the perpetual futures market, indicating that traders are actively shorting BTC because they constantly expect prices to decline.
Supply and demand affect the price of bitcoin just like any other asset. For example, demonetization in India in 2016 boosted the value of bitcoin. In that country, BTC was 20% more expensive than anywhere else.
Holders of huge bitcoin assets are called bitcoin whales, and they have thousands of BTC, enough to generate daily price movements.
Since the beginning of March, eleven people have lost a total of $61 billion in cryptocurrency, making their losses the largest in the industry. Only seven people are now crypto-billionaires.
After losing 57% of his fortune and ceasing to be a billionaire, co-founder and former president of the cryptocurrency exchange Coinbase Fred Ehrsam argues that the market crisis is nothing more than a growth disease. The 34-year-old man had $2.1 billion in capital in March, but that figure has since fallen to about $900 million.
The crisis also hit the fortunes of bitcoin investors and twin brothers Tyler and Cameron Winklevoss. The value of their assets fell from about $4 billion in March to $3.2 billion at the moment.
Previously, Binance CEO Changpen Zhao was the 19th richest person on the planet, as his net worth was estimated to be about $65 billion. His net worth is now believed to be $18.7 billion.
FTX CEO Bankman-Fried’s fortune has fallen from $24 billion to $20 billion.