Very Bullish Bitcoin Price Prediction by Mechanism Capital

Bitcoin could reach a “medium-term” price level above $1 million thanks to a series of hyper-bullish developments around the asset, according to crypto investment firm Mechanism Capital.

The company’s co-founder Andrew Kang took to Twitter on Friday to explain why he believes Bitcoin is performing “stronger than expected” despite several “poor market structure dynamics” that have plagued it in the early part of the year. this month.

How Fast Can Bitcoin Reach $1 Million?

According to Kang, the main potential catalyst for an explosion in Bitcoin’s value is the adoption of Bitcoin as a national treasury reserve asset.

While no similar promises or assurances have been made, word is circulating among the biggest voices in crypto that Donald Trump intends to pledge a national Bitcoin reserve for the United States later this month, if he is re-elected as to president

Whether or not his attempted implementation succeeds, Kang believes the mere possibility gives Bitcoin “asymmetric upside potential” that is attractive to investors today.

“There are very plausible mid-term asymmetric scenarios for $500K+, $1M+ price targets,” he wrote. “Even if you have 5% or 10% odds of that, Bitcoin here is very underpriced.”

Should the United States implement such a strategy, Kang predicts that other nations would be inspired to follow suit. He also cited rumors of a “large Asian conglomerate” that could take on a role similar to that of MicroStrategy and Coinbase in the West: publicly traded companies that provide exposure to the broader crypto ecosystem of Bitcoin/respectively.

“These bullish developments have come faster than expected, but no complaints – it’s going to be a hell of a month,” he said.

The return of the bull market?

Bitcoin surged to a monthly high of $67,000 on Friday, which it last reached in early June after the SEC approved Ethereum spot ETFs for public trading. Regulatory developments earlier this week have the first Ethereum ETFs ready to go live next week, experts predict.

From late June to early July, Bitcoin’s price faced headwinds as the German government steadily sold 50,000 BTC it had seized from a movie piracy website in January.

Its sales are now over, although CryptoQuant’s on-chain analysts believe that Bitcoin stablecoin liquidity needs to increase before Bitcoin enters another phase of bull market change.

Others believe politics is helping to boost the price of Bitcoin this week, with Polymarket betting odds increasingly favoring President Joe Biden to drop his 2024 re-election bid.

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