In a recent interview, Tom Dunleavy, Partner and Chief Investment Officer at MV Capital, shared his predictions for the prices of both Bitcoin and Cardano. At the beginning of the year, Dunleavy stated that Bitcoin would soon reach $100,000. He attributes this prediction to the upcoming Bitcoin Halving event, which he believes will cause the price of Bitcoin to skyrocket. He also notes that historically, Bitcoin has experienced at least a 4x increase in price following previous Halving events. These predictions align with the views of other experts in the cryptocurrency space, including Skybridge Capital CEO Anthony Scaramucci, who also foresees a significant increase in the price of Bitcoin as a result of the Halving.
Over the years, Bitcoin has consistently demonstrated impressive price rallies following Halving events. In 2012, 2016, and 2020, the price of Bitcoin experienced gains of 8,000%, 284%, and 559% respectively within one year after the Halving. Additionally, each Halving event has been followed by the establishment of a new all-time high for Bitcoin. With this historical data in mind, Dunleavy’s prediction of Bitcoin reaching $100,000 seems feasible.
Dunleavy also highlights other factors that contribute to his belief in a significant price increase for Bitcoin. He mentions the introduction of Spot Bitcoin ETFs and expected interest rate cuts as potential catalysts. The introduction of Spot Bitcoin ETFs is expected to drive increased demand for Bitcoin, while interest rate cuts typically have a bullish effect on the cryptocurrency. These factors serve as a solid base case for Bitcoin’s price potentially doubling in the near future.
While Dunleavy is optimistic about Bitcoin’s future, he holds a significantly different view regarding Cardano. He predicts that Cardano will lose its relevance and be replaced by a new blockchain in the coming years. Dunleavy attributes this prediction to Cardano’s lack of a stablecoin and the comparatively limited presence of DeFi on the network. He criticizes Cardano’s founder, Charles Hoskinson, calling him a “megalomaniac” who is unwilling to adapt to the evolving ecosystem. According to Dunleavy, this resistance to change has led projects on the network to explore other platforms, which may ultimately contribute to Cardano’s decline.
Dunleavy also suggests that Cardano’s limited access to Venture Capital (VC) has hampered its growth. He argues that VC investments bring not only capital but also recognition and users to a network. Without sufficient VC support, Cardano may struggle to attract projects and users, further hindering its long-term prospects.
The future of Bitcoin appears promising, with predictions of significant price increases driven by the upcoming Halving event and other macroeconomic factors. However, concerns exist for Cardano, with doubts about its relevance, lack of a stablecoin, and limited presence of DeFi. Additionally, the absence of robust Venture Capital support poses challenges for the network’s growth. As with any investment, conducting thorough research and understanding the associated risks is essential.