The most optimistic Bitcoin price forecast by Mechanism Capital

Bitcoin could reach a “medium-term” price level above $1 million thanks to a series of bullish developments around the asset.

The company's founder, Andrew Kang, tweeted on Friday why he thinks bitcoin is doing well despite several “weak market structure dynamics” that impacted it earlier this month.

How Fast Can Bitcoin Reach $1 Million?

According to Kang, the primary catalyst for the explosion in Bitcoin's value is the adoption of Bitcoin as a national treasury asset.

Although no promises or guarantees have been made, several rumors are circulating among the biggest voices of crypto that Donald Trump may promise a national Bitcoin reserve for the United States after this month if he is re-elected as president.

Whether the implementation is successful or not, Kang believes the opportunity offers “disproportionate upside potential” that is attractive to today's investors.

“There are very compelling asymmetric medium-term scenarios for $500k+ to $1 million+ price targets,” he wrote. Even if you have a 5%, 10%, chance of that, Bitcoin has a very low value here.

If the US does indeed implement this strategy, Kang predicts other countries will be motivated to follow his lead. He also mentioned rumors of a “major Asian conglomerate” that could be expected to play a similar role to MicroStrategy and Coinbase in the West – publicly traded firms offering exposure to the broader Bitcoin/broader crypto ecosystem, respectively.

“These outrageous developments have come faster than expected but don't complain – it's going to be a hell of a month,” he said.

Will the bull market return?

Bitcoin rose to $67,000 on Friday, the last time it reached since the SEC approved the publicly traded Ethereum spot ETF in early June. The regulatory developments earlier this week have set the first Ethereum ETFs to go live next week, experts predict.

From the end of June to the beginning of July, the German government continuously sold 50,000 BTC seized from a movie piracy website in January.

Chain analysts at CryptoQuant believe Bitcoin stablecoin liquidity needs to increase before Bitcoin enters another bull market swing phase, but the sell-off is now over.

Others believe politics is helping to boost bitcoin prices this week, with Polymarket betting odds favoring President Joe Biden to abandon his 2024 re-election bid.