Changpeng Zhao, Binance’s founder, predicts Bitcoin could hit $1 million this cycle, driven by factors like spot ETFs, political shifts, and the aftermath of recent exchange collapses. He believes institutional investment is essential for Bitcoin’s growth, but acknowledges concerns about its decentralisation.
In a recent chat during the Token 2049 event in Abu Dhabi, Changpeng “CZ” Zhao, the founder of Binance, unveiled a bold prediction about Bitcoin, suggesting it could reach between $500,000 to $1 million in this cycle. This estimate comes after a brief hiatus from public view while serving time in the U.S. His remarks suggest a transforming landscape for Bitcoin, indicating it’s moving into what he calls its “institutional phase.”
According to Zhao, three key factors are fuelling this optimistic outlook. First, he pointed to the emergence of U.S. spot ETFs as a significant driver. CZ noted that institutional investment, previously hesitant, is now entering the crypto space thanks to these funds. He remarked, “Most of the money in the US is institutional money… the ETFs are interesting because traditional institutional money is now entering crypto.” This, he believes, is already reflected in Bitcoin’s upward price action.
Next, Zhao discussed the notable shift in the political landscape in the U.S. since the return of Donald Trump to the presidency. “The US is now 180 degrees from where they were a hundred days ago,” he said, claiming a newfound embrace of pro-crypto policies. This change, he believes, is giving countries the green light to accumulate cryptocurrencies, leading to greater global adoption, though he admitted he wished individual investors had acted sooner.
The collapse of FTX served as the third pillar of Zhao’s argument, which he describes as a wake-up call. He mentioned that this disaster has pushed investors towards Bitcoin, the only asset to emerge unscathed from such scandals. “Anything that deals with fraud, lying, deception has to stop,” he stated, emphasising Bitcoin’s unique position amidst a marketplace filled with lesser assets. Zhao highlighted that most tokens may falter, but Bitcoin remains the favourite among institutions.
When questioned about the impact of Bitcoin’s increasing institutional involvement on its decentralised nature, Zhao acknowledged the concern. He stated that while there’s a philosophical tension, we cannot control the actions of others in a decentralised framework. “In a decentralised world, we don’t control what others do,” he reflected, addressing concerns that Bitcoin’s core principles might be compromised.
As of the time of writing, Bitcoin was trading at $94,373. As Zhao articulates this bullish sentiment, it remains to be seen if these predictions will materialise. Whether this cycle will indeed bring Bitcoin to unprecedented highs, only time will tell. There’s certainly a lot to watch for.
