Bitcoin Billionaire Throws Cold Water on Price Rise: Don’t Expect Fireworks

Peter Thiel, the billionaire entrepreneur known for his bold investment bets and controversial stances, has taken a more moderate approach to Bitcoin. In a recent interview at the Aspen Ideas Festival, Thiel revealed that he still owns Bitcoin, but expressed doubts about a dramatic price increase in the near future.

This comes as a surprise to some, considering Thiel’s previous announcements. Bitcoin has long been a point of interest for the tech mogul, who sees it as a potential hedge against inflation and a challenge to the dominance of central banks.

Founders Fund Odds Betting

Thiel’s comments come amid reports that his investment firm, Founders Fund, invested $200 million in Bitcoin and Ethereum earlier this year. Notably, this purchase occurred when Bitcoin prices hovered around $30,000, much lower than its current position near $60,800. This suggests a potentially opportunistic investment strategy for Founders Fund, which takes advantage of market dips.

However, Thiel’s recent comments about the price increase raise questions about Founders Fund’s long-term plans for these funds. While some analysts are predicting that Bitcoin will continue its rise, Thiel seems to be hedging his bets. This measured approach may reflect a shift in Founders Fund’s strategy, focusing on short-term gains instead of the long-term Bitcoin bull thesis.

Is The Bitcoin Rally Running Out Of Steam?

Thiel’s cautious stance on Bitcoin’s rising price could be a precursor to the cryptocurrency market. Bitcoin experienced a rollercoaster ride in 2024, reaching an all-time high of $73,000 in March before facing a correction. Despite the recent pullback, Bitcoin remains up 37% year to date.

Thiel’s skepticism may fuel concerns about a potential downside to Bitcoin’s rally. However, it’s important to remember that Bitcoin’s price is notoriously volatile, and short-term volatility doesn’t mean it’s against its long-term potential.

The Cryptoverse Reacts

Thiel’s mixed message sent confusion into the cryptocurrency community. Some analysts see his comments as a sign of a maturing market, where investors are taking a very different approach to Bitcoin. Some see it as a possible trigger for a price correction, while other investors are reassessing their positions based on Thiel’s influence.

Featured image from Getty Images, chart from TradingView