Binance co-founder Changpeng “CZ” Zhao expects Bitcoin’s price to top at $500,000 to $1 million during this market cycle.

During an interview with Rug Radio published on May 5, Zhao said that he expects Bitcoin to reach up to one million dollars during this market cycle. He also highlighted the role of Bitcoin spot exchange-traded funds (ETFs) in this rise, saying that the increasing institutionalization of Bitcoin is a good thing for the market:

“There’s the ETFs. There’s this institutionalization of Bitcoin [ … ] it’s a positive in terms of price action, obviously. Our bags are up  —  not the alt‑coins as much, but at least Bitcoin is.”

Zhao explained that the ETFs are “bringing the traditional institution money into crypto” and “most of the money in the US is institutional money.” He said that “Bitcoin is going up because most of the ETFs are Bitcoin-based.”

Changpeng Zhao at Rug Radio. Source; YouTube

Founder of Obchakevich Research Alex Obchakevich told Cointelegraph that “70% [of Bitcoin’s growth] is new institutional capital, the rest is just a redistribution of crypto assets.” He highlighted the role of the ETFs in pushing Bitcoin’s price higher:

”ETFs, especially Bitcoin ETFs, are a key driver of the bullish trend, but with small volatile corrections.”

Related: Binance co-founder CZ proposes Bitcoin, BNB for Kyrgyzstan reserves

Governments are in on it, too

Zhao also highlighted that governments are increasingly buying Bitcoin as well, which “is really good for the price action.” He added:

“It’s also very good validation.“

The remarks follow multiple countries accumulating Bitcoin. In late April, El Salvador, the world’s first country to adopt Bitcoin as legal tender, continued acquiring Bitcoin despite the International Monetary Fund’s comments claiming the opposite. In the seven days leading to April 27, the country acquired 7 BTC worth over $650,000 at the time.

The country’s Bitcoin Office data shows that El Salvador currently holds nearly 6,170 BTC worth almost $580 million. The Kingdom of Bhutan is also accumulating Bitcoin. January reports suggested that a new economic hub in the country plans to set up a strategic cryptocurrency reserve comprising major crypto assets, including Bitcoin and Ether (ETH).

Related: ‘To have freedom of money, you have to have freedom of speech’ — CZ

A shift in US policy

The former Binance CEO also noted that the US “has pivoted 180 degrees under a pro-crypto president,” since the election of President Donald Trump. He said:

“They’re smart enough to recognise that buying Bitcoin is a great move, and now other countries will have to follow.”

Talking about retail investors, he said that they “had 15 years to buy.” Consequently, “if they’re late now, that was their choice.”

Magazine: CZ walks free, Caroline Ellison receives prison sentence, and more: Hodler’s Digest, Sept. 22 – 28