What a massive potential wealth influx could push BTC to new highs in March.

On February 12, Mechanism Capital partner Andrew Kang predicted that this year's long-term demand for Bitcoin will be between $40 billion and $130 billion.

There is a huge amount of global wealth and income that can be channeled into crypto, with the total global income estimated at around $52 trillion.

Current crypto ownership is around 10% globally. Even if crypto holders allocate 1% of their income to digital assets each year, that's still $52 billion a year flowing into the asset class, or $150 million a day, he added.

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Huge Bitcoin earnings are expected

These estimates are conservative, he continued, because allocations could be more than 1% for many true believers, and commercial or institutional flows are not included.

Additionally, major selling flows such as Mt.Gox and mining releases have been dampened by speculative buying flows. ETF inflows further fuel demand, and recent inflows have even surpassed speculative highs.

Total inflows to date for all ETFs are $2.65 billion, according to Farside. It's the sum, which includes the grayscale streams, that will now begin to cool down. BlackRock and Fidelity each had revenues of more than $3 billion.

BlackRock themselves estimate $150 to $200 billion in outflows over the next three years.

“People seem to forget that even before these ETFs were approved, there was a huge, consistent interest in Bitcoin.”

Long term demand for $BTC flows this year I estimate will be $40-130B+.

One of the most common cardinal sins of crypto investors/traders is underestimating the amount of wealth/income/liquidity in the world and shifting to crypto. We hear about gold market price statistics… pic.twitter.com/9zFed3BJhP

— Andrew Kang (@Rewkang) February 12, 2024

He predicts that the price of Bitcoin will not spend much time below $40,000 and will reach $50,000 to $60,000 this month, a new all-time high by March.

The pre-half of the previous ATH

In the year On February 11, Bitcoin analyst Jamie Coates also predicted that BTC “has the potential to hit a major pre-halving low.”

“All the high leverage and positioning from the fourth quarter has now been cleared,” he said. In addition, open interest has decreased by 40%, and future funding rates are still “positive but very interesting.”

“ETFs continue to outperform supply by at least 2:1 and the halving is still months away.”

The final labor condition is that 10% of the volume moves at a price above the current level. “If BTC breaks $48.2k, there is a little bit of resistance,” he said.

🚀Why this #Bitcoin Rally has the potential to reach an early ATH pre-half;

1. All clear from Q4 high leverage and positioning (for now). Options OI is down 40%, and Futures funding rates are still positive but a bit bullish. ETFs continue their momentum… pic.twitter.com/zP9nYraSyF

— Jamie Coutts CMT (@Jamie1Coutts) February 10, 2024

Bitcoin is currently trading at $48,100 after hitting an intraday high of $48,700 during the Asian trading session on Monday morning.