- Jesse Powell is the chief executive officer of the world’s fourth-largest crypto exchange, Kraken.
- He told Insider why he still stands by his year-end price target of around $200,000 for bitcoin.
- He also shares 5 tokens that intrigue him as the firm launches a new 50-token-plus app in the US.
- See more stories on Insider’s business page.
Bitcoin‘s price has been cut in half from its all-time high of over $64,000 in mid-April, but Jesse Powell is unfazed.
The founder and chief executive of Kraken, the fourth-largest crypto exchange in the world by trading volume, said he has seen far worse.
“There was a time when Mt. Gox blew up and the price of bitcoin went from $1,000 down to $100 and lost 90% of its value. It’s also gone from $30 down to $2,” Powell said in an interview. “So there have been way bigger moves in the past… there have been some moments in the past where it’s like geez are we ever going to recover from this.”
Today, he no longer worries about whether bitcoin will be stuck down in the doldrums. If anything, these crashes have taught him to refrain from checking the prices every single day.
“I always tell people if you’re thinking of investing in crypto, you’ve got to be thinking about holding it for several years because we have these cycles,” he said. “If you are watching the chart every day, you’re just going to get sick because it’s just all over the place.”
Instead, Powell uses every downward price swing as an opportunity to analyze bitcoin’s fundamentals — whether it means developing a thesis around the cryptocurrency’s long-term software-eats-the-world type of trend or re-reading the bitcoin whitepaper authored by its pseudonymous creator Satoshi Nakamoto.
“It’s like when you have like a crisis of faith as a religious person, maybe you go and read the Bible or Quran,” he said. “Here you go back and read the bitcoin white paper and you’re like yeah this still makes sense.”
Standing by his $200k price target
In Powell’s view, despite bitcoin’s wild price swings over the past few weeks, nothing about its fundamentals has changed. That’s why he believes that bitcoin reaching $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 in the next year, but in the longer term, it becomes “irrational” to price the cryptocurrency against the dollar mainly due to the rampant money printing by the central bank and what might be the resultant “unchecked inflation.”
“Personally, I’m still super bullish. If you look at the chart longer-term, bitcoin is just still continuing to outperform every other asset in the world,” he said. “If you were going to sell your bitcoin at these levels, I would…