Bitcoin Could Reach $150,000 by 2027, Says Former Credit Suisse Executive

Bitcoin has navigated the worst of its current market cycle and could reach $150,000 by late 2027, according to CK Zheng, the former global head of valuation risk at Credit Suisse. Zheng, now co-founder and CIO of ZX Squared Capital, believes greater regulatory clarity will be the primary catalyst that encourages large-scale institutional investment in the asset class.

Institutional Adoption Seen as Key Catalyst

Speaking with Investing.com, Zheng identified potential U.S. legislation as a critical turning point for the digital asset. "The passing of the CLARITY Act will bring more institutional investors into this new asset class, which will trigger a new bull run," he stated.

This regulatory framework is seen as essential for drawing in capital from large financial institutions that have so far remained on the sidelines due to uncertainty. According to Zheng, this influx of institutional capital, driven by a fear of missing out (FOMO), will be a significant price driver.

A Maturing Market

Zheng argued that the current market drawdown reflects a maturing asset, unlike the systemic collapses seen in previous cycles. He contrasted the present environment with the 2022 bear market, which was characterized by "a widespread of business failures," including prominent firms like Terra/Luna, Celsius, Voyager, and FTX.

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"By comparison, the industry is much healthier during this bear market due to the rapid institutional adoption," Zheng added. He pointed to the growth of crypto ETFs and corporate treasury holdings as evidence of a market shifting toward more stable, long-term investors rather than being driven by retail speculation.

Macroeconomic Tailwinds and Cycle Timing

The former executive also tied his forecast to established market patterns and broader economic trends. He expects a new bull market to begin in late 2024 or early 2025, asserting that Bitcoin's four-year cycle remains "structurally in place."

Looking ahead, Zheng anticipates that an "unprecedented pace" of rising U.S. debt by 2027 will compel institutions to seek hedges against dollar debasement. "Serious institutional investors will need to hedge the dollar debasement risk by investing in gold and bitcoin," he said. Bitcoin was trading at approximately $78,535 at the time of his comments.