Andrew Kang estimates that global cryptocurrency ownership among investors is now 10%. A number of cryptanalysts mistakenly associate the current increase in the value of Bitcoin with the start of trading in BTC-ETF shares:
“People seem to forget that there was a huge ongoing demand for Bitcoin even before these exchange-traded funds were approved. At the same time, MTC has become an asset worth almost a trillion dollars and has been growing steadily over the past ten years. One of the most common sins of crypto investors is underestimating the amount of excess liquidity in the world and its ability to spread to cryptocurrency. Just the assumption that cryptocurrency owners allocate only 1% of their income to BTC annually should lead us to the conclusion that the potential cash flow into Bitcoin could reach at least $52 billion per year, or almost $150 million per day.”
Andrew Kang believes his assessment of the situation is quite conservative and likely does not take into account business and institutional financial flows. The expert is confident that market demand for the asset will more than absorb all the volumes from the expected sales of bitcoins from both miners and large holders like the Mt.Gox exchange. At the same time, BlackRock and Fidelity estimate a possible influx of funds from $150 billion to $200 billion over the next three years: Kang gave an example.
The price of the first cryptocurrency will not stay at $40,000 for long and could rise to $50,000 or even $60,000 by March, a seasoned investor believes.
On the afternoon of Monday, February 12, BTC was trading at $47,779. At that moment, the cost of the first cryptocurrency by capitalization rose to $48,556.
The day before, US President Joe Biden posted on social networks a photo of himself with red laser eyes, which are considered symbols of support for Bitcoin.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
