Binance’s CZ predicts Bitcoin could reach $500,000 to $1M in the current market cycle, attributing this surge to increasing institutional investments via ETFs. Governments are also accumulating Bitcoin, benefiting the market. El Salvador continues its buy-in, while Bhutan plans to set up a crypto reserve. Zhao highlights a policy shift in the US that favours cryptocurrency investments, while also noting that retail investors have had plenty of time to invest.
Changpeng “CZ” Zhao, co-founder of Binance, has sparked conversations in the crypto world by predicting that Bitcoin could potentially reach between $500,000 and $1 million during the current market cycle. In a recent interview on Rug Radio, Zhao indicated that the growing presence of Bitcoin spot exchange-traded funds (ETFs) plays a crucial role in this price surge. He believes the increasing institutional engagement with Bitcoin is a positive sign for market performance. “The ETFs are bringing traditional institutional money into crypto, which is where most of the investment in the US comes from,” Zhao explained. He noted that Bitcoin’s uptick in value correlates with the prominence of Bitcoin-based ETFs.
Moreover, Zhao pointed out a significant trend – governments are starting to buy Bitcoin, which he considers a validation of the cryptocurrency’s legitimacy and beneficial for its price. He mentioned that El Salvador, the first nation to accept Bitcoin as legal tender, has continued its purchasing spree even amid criticisms from the International Monetary Fund (IMF). In just the week leading up to April 27, El Salvador acquired seven BTC, valued at more than $650,000. Current data reveals that the country holds nearly 6,170 BTC, approaching a total worth of $580 million. Bhutan is also stepping into the Bitcoin realm, as reports earlier this year indicated plans for a strategic reserve of major digital assets, including Bitcoin and Ether (ETH).
On the US front, Zhao acknowledged the drastic policy changes since the election of a pro-crypto president. He suggested that the current government recognises the strategic advantage of Bitcoin investments, setting an example for other nations. “They’ve figured out that buying Bitcoin is a smart move,” he said, implying that other countries should take note.
Zhao didn’t forget retail investors either; he mentioned they’ve had a good fifteen years to get involved with Bitcoin. If they find themselves late to the party, he remarked, it’s a choice they’ve made. As the crypto landscape evolves, the interplay between institutional investments, government backing, and retail engagement will be crucial for Bitcoin’s future performance.
