Amid the broader crypto market correction, you might be surprised to find out that a number of high-profile investors continue to double (and even triple) down on their optimistic price predictions for Bitcoin(CRYPTO: BTC)

The first thing you should know is that Draper has been making Bitcoin price predictions for the past decade. In 2014, for example, he famously predicted that Bitcoin would hit a $10,000 price tag within three years -- which it did.

Amid the broader crypto market correction, you might be surprised to find out that a number of high-profile investors continue to double (and even triple) down on their optimistic price predictions for Bitcoin (CRYPTO: BTC).

Billionaire Silicon Valley venture capitalist (VC) Tim Draper, for example, still thinks Bitcoin could hit $250,000 by the end of 2025.

But just how likely is that? After all, Bitcoin is now down more than 20% from an all-time high of about $109,000 in January, and it has struggled to regain the $100,000 price point since then.

Tim Draper's Bitcoin price predictions

The first thing you should know is that Draper has been making Bitcoin price predictions for the past decade. In 2014, for example, he famously predicted that Bitcoin would hit a $10,000 price tag within three years -- which it did. Bitcoin crossed $10,000 in November 2017.

In 2018, he predicted that Bitcoin would hit a price of $250,000 by the end of 2022. That didn't happen. Bitcoin reached a then-all-time high of $69,000 in November 2021 before the crypto market cratered in 2022, sending Bitcoin back down to about $16,000.

In November 2022, at the very nadir of investor sentiment about Bitcoin, Draper predicted that Bitcoin would soon hit the seemingly unattainable $250,000 price point. Granted, Bitcoin recovered significantly in price, but came nowhere close to hitting $250,000. Even after huge triple-digit percentage rallies in 2023 and 2024, Bitcoin is still significantly less than $100,000.

So is the third time the charm? Is this finally the year that Bitcoin crosses over the much-anticipated $250,000 price?

Key assumptions for a $250,000 Bitcoin price

To answer that question, it's helpful to understand why Draper has been so bullish on Bitcoin for so long. A lot of that has to do with his perspective as a Silicon Valley VC.

A decade ago, Draper viewed Bitcoin primarily in technological terms. It was, quite simply, a superior form of money. It was digital, it was algorithmic, it was protected by strong cryptography, and it benefited from obvious network effects. Early adopters viewed Bitcoin as the perfect currency, unable to be debased by any government or central bank.

For much of its early history, Bitcoin was primarily viewed as a medium of exchange. In fact, the original Bitcoin whitepaper called it a "peer-to-peer electronic cash system," and that's exactly what it was supposed to be. As a result, Draper envisioned an economic future in which people used Bitcoin to pay for everyday transactions.

Image source: Getty Images.

In 2025, Draper seems to have updated his view of Bitcoin in one important way. He now appears to view Bitcoin as a store of value, in addition to being a medium of exchange. It's something that you can invest in, and trust that it will preserve its value over time. And that makes it much more valuable than any fiat currency (such as the U.S. dollar), which can lose its value over time due to factors such as inflation.

In fact, Draper recently suggested that Bitcoin will soon become the "dominant currency of the world," eliminating the need for a centralized fiat currency like the U.S. dollar. At a time when the U.S. government is carrying a $36 trillion debt load, this type of argument is starting to gain traction in the financial world.

As more people move out of dollars and into Bitcoin, the price of Bitcoin is going to go higher, right? Imagine a tsunami of new demand, as people finally give up on the U.S. dollar (and dollar-denominated assets), pushing Bitcoin to unbelievably higher price levels in years to come.

Bitcoin as a portfolio asset

That might sound unlikely, but Draper still thinks people will eventually use Bitcoin for buying food and clothing, and even for paying the rent or mortgage. But how many people are actually doing that today? It has now been 15 years, and Bitcoin is still not a generally accepted medium of exchange.

A lot of that has to do with the way people think about Bitcoin. According to the latest Motley Fool research, young investors -- such as members of Gen Z and millennials -- aren't viewing Bitcoin as a medium of exchange. Instead, they are primarily viewing Bitcoin as a long-term portfolio asset that is capable of generating real wealth over the long term.