Predicting Huge Bitcoin Demand Flows in 2024
According to Mechanism Capital partner Andrew Kang, the long-term demand for Bitcoin this year could range from $40 billion to $130 billion. This is based on the potential flow of global wealth and income into the crypto market, with global aggregate income estimated at around $52 trillion. Even if crypto owners allocate just 1% of their income annually to digital assets, that would still amount to $52 billion flowing into the market each year and $150 million per day.
Expecting Massive Bitcoin Inflows
Kang believes that these estimates are conservative since allocation is likely higher than 1% for many true believers, and business or institutional flows are not included. Additionally, major sell flows like Mt.Gox and miner emissions are outweighed by estimated buy flows. The recent inflows into ETFs have also exceeded expectations. BlackRock itself predicts an inflow of $150 billion to $200 billion over the next three years.
Predictions for Bitcoin’s Price
Kang predicts that Bitcoin’s price will not stay below $40,000 for long and will rise to between $50,000 and $60,000 this month, reaching a new all-time high by March. Similarly, analyst Jamie Coutts believes that BTC has the potential to reach its previous all-time high before the halving event. Factors supporting these predictions include the cleansing of extreme leverage and positioning from the previous quarter, decreased options open interest and less exuberant futures funding rates.
Furthermore, only 10% of the volume moved at prices above the current level, indicating minimal overhead resistance if BTC breaches $48.2k.
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