Andrew Kang has put forward an estimate for $BTC demand flow. It comes out to be in the range of $40 billion and $130 billion. The basic foundation of the estimate is that many people continue to underestimate the wealth available for investments in the crypto market or the BTC market.
Per their calculation, the annual BTC buying could come to $52 billion. This roughly translates to $150 million every day. The backdrop is that the average income of a household in the US is $105k. It moves up to $13 trillion in terms of annual income across the US, assuming there are 124 million households in the country. The US holds 25% of the global GDP. So, the global income is ~$52 trillion, per their post published on X.
Andrew has further stated that global crypto ownership is 10%. So, if owners invest even 1% of their annual income, the token would fetch a total of $52 billion of BTC annually. Kang has called it a conservative estimate for two reasons. Investors tend to dedicate more than 1% of their wealth to any investment product. Second, their estimate has not considered allocations hailing from pension funds, macro funds, and businesses, to mention a few.
Some of Andrew’s followers on X have shared their opinions. One of them has said that talks about $1 trillion could be on the horizon, while others have said that they are bullish about the crypto market. The Mechanism Capital partner has put up their thoughts on the ideal ground. However, the crypto market is known for delivering unexpected results on random timelines.
Approval from the Commission has enabled institutional investors to explore the product. Interestingly, a higher institutional adoption would drive the price to its peak.
A predicted estimate by Andrew Kang comes a day after Bitcoin analyst Jamie Coutts said that there is a possibility for BTC to reach a new ATH before the Halving event. Jamie has said that ETFs continue to outpace supply by 2:1, adding that Halving is just one month away from going live.
It is uncertain how much the token will rise before the Halving event. A teaser has come out in public, with Bitcoin surging by 11.92% in the last 7 days. It was last seen exchanging hands at $48,171.15. This is a jump from the $40,000 the token achieved after the ETF applications’ approval. Its 24-hour volume is also up by 2.59% at the time of drafting this article.
Andrew Kang and BTC holders remain bullish about Bitcoin. The sentiments stem from the fact that the token continues to dominate the crypto market and drive macro growth, with ETH following the least, trading at more than $2,500.
Source: https://www.cryptonewsz.com/andrew-kang-estimates-high-btc-demand-flow-this-year/