- Jesse Powell is the CEO of the fourth largest crypto exchange in the world, Kraken.
- He told Insider why he is still sticking to his year-end price target of around $ 200,000 per bitcoin.
- He also shares 5 tokens that intrigued him as the firm launches a new 50 token app in the US.
- See more stories on the Insider business page.
The bitcoin price has dropped in half from a record high of $ 64,000 in mid-April, but Jesse Powell doesn’t mind.
The founder and CEO of Kraken, the fourth largest cryptocurrency exchange in the world by trading volume, said he had seen much worse.
“There was a time when Mt. Gox exploded and the price of bitcoin dropped from $ 1,000 to $ 100 and lost 90% of its value. It also dropped from $ 30 to $ 2, ”Powell said in an interview. “So there have been much bigger steps in the past … there have been times in the past where it seemed like we would someday recover from this.”
Today, he is no longer worried about whether Bitcoin gets stuck in a depressed state. If anything, these crashes taught him to refrain from checking prices on a daily basis.
“I always tell people that if you are thinking about investing in cryptocurrency, you should be thinking about holding it for several years, because we have these cycles,” he said. “If you look at the chart every day, you’ll just get sick because it’s all over the place.”
Instead, Powell uses every drop in price as an opportunity to analyze the fundamentals of bitcoin – whether it be developing a thesis about a long-term cryptocurrency trend based on world-eating software, or rereading a technical paper on bitcoin written by its pseudonym creator. Satoshi Nakamoto.
“It’s like a crisis of faith as a religious person, maybe you go and read the Bible or the Koran,” he said. “So you go back and read the Bitcoin whitepaper and you think yes, it still makes sense.”
Following its $ 200K target price
According to Powell, despite the sharp fluctuations in bitcoin prices over the past few weeks, nothing has changed in its fundamentals. This is why he believes that Bitcoin will hit $ 200,000 by the end of this year “is still possible.”
Powell told Insider in an April interview that he could “easily” see bitcoin hit $ 250,000 next year, but in the longer term it becomes “irrational” to price crypto against the dollar, largely due to rampant printing money by the central authorities. bank and what may be the result of “uncontrolled inflation”.
“Personally, I am still optimistic. If you look at the chart in the long term, bitcoin still continues to outperform all other assets in the world, ”he said. “If you were going to sell your bitcoin at these levels, I would ask what could be better than bitcoin at $ 32,000.”
Indeed, since the interview, bitcoin has already jumped above $ 36,000 as of 3:30 pm ET Wednesday, which means a 10% price change in 24 hours.
Powell said it is difficult to pinpoint exactly what drives the price, but he does think that many of the regulatory factors hampering Bitcoin’s development are good in disguise.
For example, China’s latest “bitcoin ban” could help mining become more geographically diverse. The FBI seizure of $ 2.3 million in bitcoin ransomware for Darkside shows that law enforcement already has the tools to track the movement of illicit funds. Greater regulatory clarity around cryptocurrency could also open up more liquidity, making it more accessible to the most conservative institutions, Powell said.
5 tokens that intrigued him
As one of the earliest bitcoiners, Powell is by no means a bitcoin maximalist or one who sees bitcoin as the only cryptocurrency that will be needed in the future.
“I think this is a very short-sighted point of view, there are many things in the world that have value. You can have value in gold, silver, art, Pokemon cards, or Tesla stock, ”he said. “There are many great investments to be made. I definitely don’t see Bitcoin as the only good investment or the only way to retain value in the long run. “
While Powell considers Bitcoin to be the best version of digital gold, as evidenced by its durability, security, and reliability over the years, he does not rule out the possibility of a rather controversial theory that Ethereum could overtake (or “wobble” in crypto slang) Bitcoin at some point. time.
“If you think of Ethereum as something that is more actively used in day-to-day trading for all smart contracts, to power the NFT and all use cases for Ethereum,” he said, “I think it makes sense to imagine that in which “at this point, the total value of all floating Ethereum exceeds the value of Bitcoin.”
In addition to the two largest cryptocurrencies, Powell said that he was also intrigued by some other fast-growing tokens, including Dotted (POINT), Uniswap (UNI), Chain link (LINK), Filecoin (FIL) and Kusama (KSM).
“I wouldn’t say if they would be a good investment,” he said, “but from a technical point of view, what they are working on is really interesting.”
With the rise in the number of major cryptocurrencies and altcoins, Kraken has seen an increase in new customers and trading volumes. To meet the growing demand, the company recently unveiled a new app in the US that aims to “make investing in cryptocurrency as easy as buying stocks.” The app allows retail traders to buy and sell over 50 tokens.
“Companies like PayPal, Cash App and Robinhood only make a few coins,” Powell said, “so if you want to dive deeper into cryptocurrency and trade some of the more exotic and new things, you can do so through Kraken.”