Bitcoin’s price could drop significantly before reaching a new all-time high, according to Dan McArdle, the co-founder of leading crypto research firm Messari.
McArdle, a former web developer and support engineer, tells his Twitter followers that Bitcoin could copy gold’s price movements in the future.
The price of both Bitcoin and the gold bullion have increased considerably this year, and McArdle believes that financial markets could see a weaker dollar in the next few months. He also shares insights from macro investor Raoul Pal who tracks leading fiat currencies that are currently struggling against the US dollar.
Pal argues,
“Gold is rightly doing its job, sniffing out a big problem and is exploding higher, outperforming even the super strong dollar as gold begins to price in an end game of an eventual massive readjustment of the dollar (in 12 months? 18 months?).”
During an episode of Stevan Livera’s podcast on July 29, Pal notes that Bitcoin could surge dramatically in the coming years with the global money supply and global debt currently valued around $80 trillion.
Given these figures, Pal says,
“Let’s say you have a 10% probability [that Bitcoin takes a cut of the $80 trillion], that’s $8 trillion. It’s currently worth [a little over] 200 billion dollars. So even if there’s a 1% chance of working… what it’s telling you is (Bitcoin is) ludicrously underpriced if any of these probabilities play out.”
Pal is not the only one who’s bullish about the flagship cryptocurrency. Legendary billionaire venture capitalist Tim Draper recently doubled down on his prediction that Bitcoin will reach $250,000.
In an interview with Yahoo Finance, Draper says it will take a little longer for Bitcoin to reach a quarter of a million dollars, because “it has consolidated more than [he] thought it would.”
Says Draper,
“I thought there would be many more competitors at this point that were really relevant, but people have consolidated towards Bitcoin because it’s decentralized.”
Previously, the founder of Draper Associates had predicted that Bitcoin would hit the $250,000 mark by 2022.
Bitcoin is currently trading at $11,800, up .6%, according to CoinGecko at time of writing.
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