Mechanism Capital’s Andrew Kang took to social media on Sunday, Feb. 11, to project substantial demand flows into Bitcoin (CRYPTO: BTC).
Long-term Bitcoin demand flows for 2024 will be in the $40 billion to $130 billion range, he predicts. And “underappreciating” the amount of global wealth with the potential to spill over into the cryptocurrency sector is “one of the most common cardinal sins of crypto investors/traders.” See below.
Long term $BTC demand flows this year I approximate to be $40-130B+
One of the most common cardinal sins of crypto investors/traders is underappreciating the amount of wealth/income/liquidity in the world and its spillover into crypto. We hear stats about the market cap of gold,… https://t.co/9HhqxSE6s2 pic.twitter.com/9zFed3BJhP
— Andrew Kang (@Rewkang) February 12, 2024
“True believers” put in 50% or more into Bitcoin, raising the average allocation to possibly 3-5%.
Allocations from businesses and funds are not included and on a “similar order of magnitude.”
These buy flows “dwarf all of these sell flows put together,” Kang explained, pointing to Mt. Gox unlocks, miners selling and seized bitcoin as potential sell pressure.
‘Good Chance’ This Bull Cycle Is ‘The Largest’ Thus Far
Meanwhile, Cryptoquant CEO Ki Young Ju noted the significance of Bitcoin spot ETFs, which conduct settlements on-chain daily, adding a layer of transparency and trust to the market.
Young Ju also brought attention to the resilience of Bitcoin investors from the 2021 bull cycle, who are now nearing the break-even point, commending their patience and long-term commitment.
Syncracy Capital’s Daniel Cheung further bolstered the optimistic sentiment, predicting this bull cycle could be the largest in terms of market cap creation and duration.
Good chance this bull cycle ends up being the largest in terms of market cap creation and longer in duration than expected:1) First time the crypto bull market has aligned with the start of a Fed easing cycle2) Market remains in a “buy the dip” mentality absent a severe macro…
— Daniel Cheung (@HighCoinviction) February 12, 2024
Cheung pointed to several factors, including the alignment with the Fed’s easing cycle, a sustained “buy the dip” mentality and increased institutional buy-in from large consumer enterprises.
Cheung also highlighted…
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