25 February, 2024

Analyst Predicts Massive Bitcoin Demand Surge in 2024

2 weeks ago

16 Feb, 2024

  • Kang estimates Bitcoin demand could reach between $40 billion to $130 billion annually.
  • Global household income suggests a potential $52 billion yearly inflow into Bitcoin.
  • ETF launches and investor enthusiasm are expected to drive Bitcoin’s price upwards.

Andrew Kang, a notable crypto figure, took to X platform to highlight the underestimated potential of Bitcoin demand for the year, projecting it to range between $40 billion to $130 billion. He emphasized the common oversight among crypto investors: the failure to grasp the vast wealth circulating globally and its possible redirection into cryptocurrency. Moreover, Kang offered a comprehensive analysis, shedding light on the immense liquidity that could bolster Bitcoin’s value further.

Kang drew attention to the staggering annual income in the U.S., amounting to $13 trillion across households. Consequently, the worldwide amount reaches around $52 trillion, which means the yearly income of the U.S. is 25% of the global. With an average global crypto ownership pegged at 10%, even a modest 1% annual income allocation to Bitcoin suggests a significant $52 billion inflow. However, Kang argued that actual figures could be higher, given the enthusiastic investment from true believers and the exclusion of institutional allocations in his estimates.

Additionally, Kang addressed concerns surrounding potential sell pressures from events like Mt. Gox and USG Selling. He stated that the buying momentum easily overshadows these sell flows, further solidifying Bitcoin’s bullish outlook. Moreover, the introduction of ETF inflows serves as a robust counterbalance, potentially elevating daily investments to the $100-200 million range.

Despite historical skepticism tied to significant crypto events, Kang remains optimistic about Bitcoin’s trajectory. He distances the current ETF launch from past occurrences like the CME futures and Coinbase IPO, hinting at a sustained price above $40k. Kang forecasts a climb to the $50-60k range by February, with new all-time highs by March. As of the latest update, Bitcoin’s price is quoted at $48,241.57 showcasing a 0.12% increase in the last 24 hours.

This bullish perspective not only underscores the expansive potential of Bitcoin demand but also invites investors to broaden their horizon. Kang’s analysis suggests a reevaluation of the crypto market’s dynamics, encouraging a more inclusive understanding of global wealth flows and their impact on cryptocurrency. As Bitcoin continues to carve its path in the financial landscape, the insights provided by industry experts like Kang are invaluable in navigating the complex interplay of factors shaping its future.