Bitcoin has revolutionized the world of finance. Its price is perhaps the most consulted aspect of the coin and at the same time (ironically) the least “revolutionary.”
Over-volatility of price and unstoppable news of frauds and substantial investments have sparked a lot of debate and predictions; something that has become a popular conversational topic among hodlers and cryptocurrency enthusiasts. The community’s interest in these fluctuations is so high that exclusive memes and words have even emerged: Hodl, Lambo, moon, scamcoin, are the best known. Other jargons such as whale, buy the dip, weak hands, fomo, pump and dump, etc. have been adapted from different environments and are already natural to investors and fans on the cryptosphere.
After the exponential rise in bitcoin prices, the strong bearish trend since January led to posts with more HODLS and fewer MOONS in social media. The financial authorities of traditional banking were busy cataloging the bitcoin as a bubble with some discouraging forecasts that did not help at all to reverse the trend.
But it seems that the trend has bounced back after hitting the $6000 support level thanks to some announcements pointing to substantial investments in crypto by giants such as George Soros, the Rockefellers, and Goldman-Sachs. From that moment on, the bulls began to gain strength in the economic game of crypto markets.
One of the first to take the plunge with a value prediction was Tim Draper, a venture capital investor founder of Draper Associates, a VC firm with an investment portfolio of at least 80 successful companies including Tesla, Baidu, Coinbase, Bancor, Skype, Twitch and Robin Hood. In a rather striking act and with a market still bearish in the short term, he dared to predict a price of $250,000 by 2022. A figure that may seem exaggerated after such a sharp drop.
However, Mr. Draper’s predictions do not seem to be very far from reality as they are gaining confidence and followers who trust in the possibility of the realization of this prophecy. One of those who has recently supported this prediction is Brian Kelly, Founder, and CEO of BKCM LLC. A company focused on crypto investment.
In an interview for CNBC’s “Fast Money” show, Melissa Lee (host), asks Mr. Kelly for his opinion of Draper’s predictions, which may sound crazy to the public, to which, he responded with a tone of confidence
“It sounds crazy, but think about it this way: That’s 4 years from now, that’s a 3000% return from here -which again sounds crazy- but over the last two years bitcoin had a 4000% percent of return. So, now again, it’s parabolic, but it would just be a continuation of the trend that we’re seeing”
For this type of trends to occur, Brian Kelly says it requires an increase in the volume of transactions: something that large institutional capitals could promote, contributing in turn to lower volatility:
“If the number of transactions […] catch up a bit, then I do think we’ve bottomed here, and I do think we’ve got a sustainable bull run ahead of us.”
When asked about his “Personal forecast,” Brian Kelly seems to agree with Tom Lee’s prediction:
“We can get transaction volumes up again. Then, there’s no reason why this couldn’t be at 20-25 thousand by the end of the year again; we can make a new high.”