It was earlier this week when reports came up pointing to the fact that the price of bitcoin had crossed the $8,000 mark. And that pulled along with a significant spike in the buy volumes across most of the major cryptocurrency exchanges.
A number of analysts have moved ahead to provide an explanation regarding the recent surge in demand from the large number of the institutional investors. The Other thing that was covered was the inflow of new capital and reports indicate that those were the factors that could have resulted in the surge in bitcoin price that was experienced.
The latest reports indicate that Tim Draper, who happens to be a billionaire venture capitalist, had moved ahead to make his 2022 prediction regarding the price of bitcoin. He had put it to stand at a figure of about $250,000.
According to him, the price of $250,000 was set to culminate in a $5 trillion market valuation of bitcoin. At its top performance, he cryptocurrency market was estimated to stand at about $900 billion. Fundamentally, there would be need for the price of bitcoin to move up by more than 31-fold within a 4-year span since that was the only way f riot to surpass $250,000.
Around that same period when Draper unveiled his long-term goal for his bitcoin investment, it is said that the cryptocurrency investors and community within the market apparently shared Draper‘s sentiment. The experts moved ahead to agree to the $250,000 price target for bitcoin terming it a rather realistic target, especially in the long-term.
It is also worth noting that quite a large number of the investors in the cryptocurrency market are not the kind that will usually move out there in the pursuit of the short-term profits. Had that been the scenario, quite a significant number of those investors could way back in 2017 have resorted to cashing out.
Several economists have been quick to give their perspective regarding the matter and they argue that at the moment the cryptocurrency market was in a bubble. They took the strong stand that most of the investors were greedy and that was the reason they did not cash out at the all-time high of the market in December.