CNBC is analyzing recent bullish claims on the price of Bitcoin from billionaire venture capitalist Tim Draper.
Draper recently said Bitcoin will likely hit a quarter million dollars per BTC as early as next year and as late as 2023.
According to CNBC trader and analyst Brian Kelly, Bitcoin’s trendline since 2013 shows the leading cryptocurrency is on a long-term track toward Draper’s big number.
“It sounds bizzaro, but it wouldn’t be out of the realm of what Bitcoin has done in the past. That’s why I wanted to bring up this chart. And to be clear, this is not my call, but I just want to take a look at what Bitcoin does. The chart we have here is a log chart of Bitcoin since 2013. And as Carter Worth will say, the lines draw themselves.
You have this channel going all the way back to 2013, and it’s traded nicely in that. If you go all the way here to the top of this channel, that’s about $200,000 or $250,000. So if Bitcoin just stayed in this pattern, and this is normal analysis that people do on all asset classes, the top of that channel is about $200,000 or $250,000. So that’s the technicals behind it.
Kelly says the prediction depends on whether Bitcoin emerges as a digital alternative to gold. If BTC hits the big price target, Kelly points out it will have achieved half of gold’s market cap.
The fundamentals, let’s call it, is that if Bitcoin were at $250,000 that’d be about a $4.5 trillion market cap, which would be half the market cap of all the gold in the world. So I think Tim Draper thinks, and I certainly have some of this view, is that Bitcoin is going to take market share from gold. So if you think in two years it can take 50% of that market share, then that prediction isn’t too far out of whack.”
— CNBC’s Fast Money…