Bitcoin's Value Defended by Draper Amid Price Drop, Texas Adopts Bitcoin Reserve Act

Tim Draper, a prominent venture capitalist, has reiterated his bullish stance on Bitcoin, describing it as a global hedge due to its decentralization, immutable ledger, and deep liquidity across markets worldwide. He has forecasted that Bitcoin could reach $10 million per coin, aligning himself with Michael Saylor's ultra-bull camp. Despite past price target misses, Draper remains confident in Bitcoin's long-term prospects.

Draper defended Bitcoin’s value amid a recent price drop, emphasizing its borderless nature and resistance to inflation. He framed Bitcoin as the ultimate hedge against unchecked government spending, highlighting its value in uncertain times. Draper's forecast of Bitcoin reaching $10 million per coin comes after he previously called for a $10,000 price in 2014 and projected $250,000 by the end of 2022, both of which missed their marks. However, he now expects the token to reach $250,000 in 2025, citing its global reach and resistance to inflation.

In terms of on-chain activity, Bitcoin’s fundamentals remain robust. Exchange outflows have continued, with over $650 million in BTC withdrawn from major centralized exchanges in the last 72 hours, reflecting sustained long-term accumulation behavior. Short-term holders are the main contributors to recent sell pressure, while long-term wallets — defined by holding periods longer than 155 days — have remained net positive over the last three weeks.

One of the most significant developments is the formal ratification of the Texas Bitcoin Reserve Act, which mandates that a portion of Texas’ state surplus will be held in Bitcoin, managed by a publicly auditable cold storage framework. This law is expected to set a precedent for other U.S. states and municipalities evaluating BTC as a treasury hedge, potentially creating a new class of state-level institutional demand.

Recent ETF data from major financial institutions shows continued net redemptions, although outflows have slowed significantly compared to last week. Market strategists attribute this behavior to short-term macro uncertainty, including concerns over Fed policy shifts and liquidity tightening, rather than a loss of structural confidence in Bitcoin as an asset class.

There is growing discourse around Bitcoin’s scalability bottleneck resurfacing amid renewed Layer 1 congestion. The Lightning Network remains underutilized in terms of capacity, and concerns persist regarding its ability to support future mass adoption, especially in the face of increasing institutional and sovereign-level traffic.