Key Points
- Andrew Kang from Mechanism Capital predicts a surge in Bitcoin’s price to a new All-Time High (ATH) in the coming weeks.
- He anticipates Bitcoin’s price will not stay below the $40,000 mark for long and expects a rise to the range of $50,000 to $60,000 within the current month.
- Kang’s bullish sentiment is based on his analysis of substantial demand flows expected to permeate the Bitcoin market throughout the year.
- He emphasizes the vast pool of wealth, income, and liquidity present globally, asserting that these resources have the potential to spill over into the crypto space.
- Despite challenges like the Mt. Gox collapse, Celsius controversies, and government sell-offs, Kang argues that these factors are minor compared to the potential demand flows into Bitcoin.
- Kang anticipates that the recent approval of spot Bitcoin Exchange-Traded Funds (ETFs) will further increase demand.
- Bitcoin is currently trading at $48,119, with analysts remaining optimistic about Bitcoin’s prospects for reaching new all-time highs in the coming weeks and months.
Andrew Kang, a partner at Mechanism Capital, recently predicted that the price of Bitcoin is set to surge to a new All-Time High (ATH) in the coming weeks.
This surge is expected to be driven by a robust long-term demand flow ranging between $40 billion and $130 billion.
Kang’s Bullish Bitcoin ATH Projections
Kang’s forecast is based on the perspective that Bitcoin’s price will not dwell below the $40,000 mark for long.
He anticipates a rise to the range of $50,000 to $60,000 within the current month, with the potential for a new ATH by March.
This bullish sentiment stems from his analysis of the substantial demand flows expected to permeate the Bitcoin market throughout the year.
He highlights a common oversight among crypto investors and traders, emphasizing the vast pool of wealth, income, and liquidity present globally.
Kang asserts that these resources have the potential to spill over into the crypto space.
To illustrate this, he conducts a rough demand sizing exercise, starting with the average annual income of US households, which stands at $105,000.
With 124 million households in the US alone, the aggregate annual income in the country amounts to a staggering $13 trillion.
When extrapolated globally, with the US contributing approximately 25% to the global GDP, this yields a figure of around $52 trillion in aggregate income worldwide.
Bitcoin’s Price to Surge Above Challenges
Kang addresses common concerns such as the impact of historical events like the Mt. Gox collapse, Celsius controversies, and government sell-offs.
He argues that these factors pale in comparison to the potential demand flows into Bitcoin.
Kang contends that while traders and investors often focus on visible sell pressures, they overlook the size and scale of the buy-side flows, which continue to drive Bitcoin’s rise.
He also anticipates that the recent approval of spot Bitcoin Exchange-Traded Funds (ETFs) will further increase demand, potentially reaching daily inflows of $100-200 million or more over the coming months.
The recent milestone of the spot Bitcoin ETF recording $403 million in net inflow on February 8 signifies the growing mainstream interest in crypto investment vehicles.
Major players like BlackRock Inc (NYSE: BLK) and Fidelity Investments have each witnessed inflows exceeding $3 billion, with BlackRock projecting a total inflow of $150 billion to $200 billion over the next three years.
However, Kang noted that this demand surge predates the approval of Bitcoin ETFs, indicating sustained interest in Bitcoin.
As of now, Bitcoin is trading at $48,119, having reached an intraday high of $48,700 during the Asian trading session this morning.
With favorable market conditions and growing institutional adoption, analysts remain optimistic about Bitcoin’s prospects for reaching new all-time highs in the coming weeks and months.
