Bitcoin (BTC) is riding on an upward trend by breaching the $48,000 price level again. Data depicts that the biggest crypto is a winning streak by gaining around 13% in the last 7 days. BTC is on track for its seventh consecutive daily gain. If it can maintain the momentum then it will mark its longest such streak since January 2023.
Bitcoin up over ETF inflows?
According to the reports, this surge is partially attributed to the success of the recently launched US exchange-traded funds (ETFs) for Bitcoin. Nine new spot Bitcoin funds entered the US market on January 11. It added over $9 billion in investor inflows.
BlackRock Inc. and Fidelity Investments emerged as the most successful ETFs launched. It can be considered by recording the assets garnered within a month on the market, as highlighted by Bloomberg Intelligence analysts Eric Balchunas and James Seyffart.
Experts hint that the long-term demand for Bitcoin in 2024 is estimated to range between $40 billion to $130 billion. This bullish outlook is a key aspect often underestimated by crypto investors. However, it also opens the door for the vast amount of global wealth, income, and liquidity that can potentially flow into the crypto space.
Experts gives out bullish prediction
Andrew Kang highlighted that the average US household income is $105,000, totaling $13 trillion across 124 million households. Considering a global total income of approximately $52 trillion, with an assumed 10% average crypto ownership globally (15% in the US and up to 25-30% in the UAE). A conservative allocation of 1% of income to Bitcoin moves to an annual buying potential of $52 billion and a daily influx of $150 million.
He added that this estimation excludes potential contributions from businesses, macro funds, pension funds, sovereign wealth funds, and more. This comes in despite concerns emerging to issues like Mt. Gox, Celsius, US government selling, and miner emissions.
Adding to the positive sentiment are the inflows from ETFs. Data predicts that the lower bounds of estimates cover the sell flows. It is important to note that observations suggest daily inflows of $100-200 million, exceeding the upper bounds. This trend pushes a positive outlook for Bitcoin, challenging any bearish arguments.
Bitcoin price is now up by more than 31% in the last 90 days. BTC which recently broke through the $48k price level, dropped below the crucial mark. It is trading at an average price of $47,985, at the press time.
