Tim Draper: Bitcoin Hits $250.000
Venture capitalist Tim Draper predicts that Bitcoin could triple in value to $250,000 by 2024, driven by the introduction of spot exchange-traded funds (ETFs) and the upcoming Bitcoin halving. Speaking at Paris Blockchain Week, he highlighted Bitcoin as a crucial hedge against the devaluation of fiat currencies.
Draper believes that the approval of spot Bitcoin ETFs in the U.S. has opened a new avenue for investors and act as a hedge against financial instability. He points to Bitcoin’s limited supply and its increasing acceptance as a payment method as reasons for its wider appeal.
Furthermore, Draper considers Bitcoin a reliable protection against inflation, noting that people are increasingly placing their trust in Bitcoin over fiat money. The forthcoming fourth Bitcoin halving, scheduled for April 20, is viewed by Draper as a significant event that will substantially impact market dynamics, with the expectation that it will lead to a decrease in supply, an increase in demand, and a price increase based on basic economic principles.
The investor also reiterates that a minor exposure to Bitcoin is becoming an increasingly attractive option as a hedge against concerns about bank failures and the devaluation of sovereign currencies.
Source: Cointelegraph
Retail Investors Dominate, Comprising 90% of Bitcoin ETF Inflows
Jan van Eck, CEO of the investment management firm VanEck, has revealed that retail investors have been the primary contributors to the capital inflows into spot Bitcoin ETFs in the United States since their launch four months ago. Despite significant capital being drawn into Bitcoin ETFs in 2024, traditional banking and institutional investment sectors have largely remained on the sidelines.
Van Eck expressed surprise at the substantial inflows, which have reached billions of dollars on some days, but noted that these investments have predominantly not originated from traditional finance sectors. According to him, around 90% of the inflows are from retail investors, with some contributions from Bitcoin whales and institutions that were already exposed to Bitcoin. No U.S. banks have yet approved or allowed their financial advisors to recommend Bitcoin.
The CEO anticipates potential investments from banks and traditional firms in the coming month, but emphasizes that the Bitcoin ETF market is still developing. He highlighted convenience, safety, and affordability as reasons why investors might prefer ETFs over direct Bitcoin ownership, noting the lower spreads and minimal or no fees associated with ETFs.
Source: Cointelegraph
Claude AI Predicts When Cardano (ADA) Will Hit $5
The AI model Claude has explored the potential for Cardano (ADA) to reach a $5 valuation, considering its current position as the 10th largest cryptocurrency by market capitalization. Claude acknowledges the unpredictability of the crypto market, making it challenging to pinpoint if or when ADA will hit this price point. However, it identifies several critical factors that could influence ADA’s price increase:
- Adoption and Real-world Usage: For ADA to achieve the $5 milestone, there needs to be a significant increase in its adoption and utilization in real-world applications. The integration of Cardano’s technology and smart contract capabilities by more projects and companies could enhance its utility and demand, potentially elevating its price.
- Technological Advancements: Cardano’s commitment to peer-reviewed academic research and its modular architecture is unique in the crypto space. This approach allows for systematic updates and improvements, which Claude AI sees as a vital element for ADA’s price growth. Despite criticisms regarding the pace of Cardano’s development, its founder Charles Hoskinson defends the ecosystem’s robustness and future prospects, particularly highlighting upcoming features like SanchoNet for scalability and Ouroboros Leios for addressing the blockchain trilemma.
- Investor Interest: The involvement of institutional and retail investors plays a significant role in driving ADA’s price. Similar to Bitcoin’s surge following ETF approvals, increased investment from hedge funds, investment firms, and large corporations in Cardano could lead to substantial price gains for ADA.
- Regulatory Clarity: The AI model underscores the need for clear and possibly favorable regulation towards the crypto industry. Such regulatory clarity could instill more confidence among investors, contributing to ADA’s growth given the generally volatile nature of cryptocurrencies.
While these factors outline the potential drivers for ADA’s price to reach $5, Claude AI remains cautious about the timing and certainty of this achievement due to the inherent volatility and uncertainty of the cryptocurrency market.
Source: Zycrypto