Bitcoin could potentially reach a “mid-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, wrote to Twitter on Friday explaining why he thinks Bitcoin is performing “stronger than expected” despite several “poor market structure dynamics” that affected it earlier this month.
How Fast Can Bitcoin Reach $1 Million?
According to Kang, the leading potential catalyst for an explosion in Bitcoin’s value is Bitcoin’s adoption as a national treasury reserve asset.
Though no promises or guarantees of the like have been made, several rumors are circulating among crypto’s biggest voices that Donald Trump intends to promise a national Bitcoin reserve for the United States later this month, if re-elected as President.
Whether or not his attempted implementation is actually successful, Kang believes the mere possibility gives Bitcoin “Asymmetric upside potential” that’s attractive to investors today.
“There are very plausible asymmetric mid-term scenarios for $500k+, $1 million+ price targets,” he wrote. “Even if you have probabilities of that at 5%, 10%, Bitcoin here is very underpriced.”
Should the US indeed implement this strategy, Kang predicts other nations would be inspired to follow its lead. He also cited rumors of a “major Asian conglomerate” potentially assuming a similar to role to MicroStrategy and Coinbase in the west – publicly traded firms that provide leveraged Bitcoin / broader crypto ecosystem exposure respectively.
“These bullish developments have come quicker than expected but not complaining – it’s gonna be a hell of a month,” he said.
Return Of The Bull Market?
Bitcoin surged to a monthly high of $67,000 on Friday, which it last attained in early June after the SEC approved Ethereum spot ETFs for public trading. Regulatory developments earlier this week have the first Ethereum ETFs primed to go live next week, experts predict.
From late June through 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, though on-chain analysts at CryptoQuant believe Bitcoin stablecoin liquidity must rise before Bitcoin enters another bull market swing phase.
Others believe politics are helping boost Bitcoin’s price this week, with Polymarket betting odds increasingly favoring President Joe Biden to abandon his 2024 re-election bid.
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