Changpeng “CZ” Zhao, co-founder of Binance, believes that Bitcoin might soar to between $500,000 and $1 million in this market cycle. In a recent interview with Rug Radio, he voiced optimism about Bitcoin’s future, particularly pointing to the influence of Bitcoin spot exchange funds (ETFs), which he sees as a sign of growing institutional interest in Bitcoin.
“There’s an ETF. There’s this institutionalization of Bitcoin. It is clearly positive in terms of price action. Our bags are up—not altcoins, but at least bitcoins.”
Zhao elaborated that ETFs effectively draw traditional institutional money into cryptocurrencies, noting that the majority of capital in the U.S. markets is institutional. He emphasized that Bitcoin’s increase is largely due to the prevalence of Bitcoin-focused ETFs.
Alex Obchakevich, the founder of Obchakevich Research, remarked on Bitcoin’s emergence as a new institutional asset, describing other cryptocurrencies as merely redistributions of crypto wealth. He emphasized the crucial role of ETFs in boosting Bitcoin’s price.
“ETFs, particularly Bitcoin ETFs, are key drivers of bullish trends, but with little volatility correction.”
The government is also working on that
Zhao also highlighted a growing trend among governments buying Bitcoin. He stated:
“That’s also a very good verification.”
This comes amid reports of multiple nations accumulating Bitcoin. For instance, El Salvador, the first country to adopt Bitcoin as legal currency, has continued to increase its holdings, acquiring 7 BTC despite concerns from the International Monetary Fund. As of late April, the nation holds 6,170 BTC, valued at nearly $580 million. Additionally, Bhutan has plans to build a strategic cryptocurrency reserve, which will include major assets like Bitcoin and ether (ETH).
Changes in US policy
The ex-CEO of Binance noted a significant shift in U.S. policy since President Donald Trump’s term, stating that the administration has “pivoted 180 degrees” regarding cryptocurrency. He commented:
“They are smart enough to recognize that buying Bitcoin is a big move, and now other countries will have to follow.”
Reflecting on retail investors, Zhao mentioned, “I had 15 years of purchases,” suggesting that any delays by investors were their own decisions.
