Venture capitalist Tim Draper predicts bitcoin will multiply by 30 times within four years.
He made the forecast Thursday evening at his “Draper Block(chain) party” in California.
Draper tweeted early Friday morning New York time that he was predicting “bitcoin at $25k by 2022,” causing confusion among investors.
But he clarified in an afternoon tweet that $250,000 was the correct figure.
“It sounds crazy,” Brian Kelly, founder and CEO of BKCM, an investment firm focused in digital currencies, told American network CNBC on “Fast Money” Friday. “But think about it this way: that’s four years from now. That’s a 3,000 percent return from here. But over the last two years bitcoin has had a 4,000 percent return. It would be a continuation of that trend.”
Bitcoin traded near $8,100 on Friday afternoon, up more than 18 percent for the week, according to Coinbase. The cryptocurrency suddenly shot 17 percent higher Thursday morning. Many traders attributed the spike to investors covering their shorts or buying back into the market after betting against bitcoin.
Fundstrat Global Research’s Tom Lee, the only major Wall Street strategist to issue bitcoin price targets, expects the cryptocurrency will reach $20,000 by the middle of the year and $25,000 by the end of 2018.
Draper is founding partner of Draper Associates and DFJ, an early investor in Skype and Chinese search giant Baidu. He bought nearly 30,000 bitcoins in a 2014 U.S. Marshals Service auction, all of which he said in December he was still holding. If that is still the case, Draper’s bitcoin investment is worth roughly $243 million at Friday’s prices.