Bitcoin's Worst Is Over, Eyes $150K by 2027, Says Former Credit Suisse Risk Head

The most difficult phase of Bitcoin's current cycle is past, with the cryptocurrency poised to reach $150,000 by the end of 2027, according to CK Zheng, the former Head of Global Valuation Risk at Credit Suisse. Zheng, now the co-founder and Chief Investment Officer of ZX Squared Capital, asserts that increasing regulatory clarity will be a key catalyst for attracting significant institutional capital.

A Maturing Asset Class

In an interview with Investing.com, Zheng characterized the recent Bitcoin pullback as a sign of the asset class's maturation rather than a systemic breakdown. He contrasted the current environment with the 2022 bear market, which saw a wave of corporate failures.

"In the 2022 bear cycle, the crypto industry experienced large-scale corporate collapses," Zheng said, citing the failures of Terra/Luna, Celsius, Voyager, and FTX. He argued that the industry is in a much healthier position this time, thanks to the rapid entry of institutional players. The growth of crypto ETFs and the trend of corporations adding Bitcoin to their balance sheets are attracting more long-term investors over short-term retail speculators, he added.

Catalysts for the Next Bull Run

Zheng believes Bitcoin's structural four-year cycle remains intact and anticipates the next bull market will begin late this year or in early 2025. He identified a clear regulatory framework as a primary driver for the next leg up.

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"The passage of the 'CLARITY Act' will attract more institutional investors into this emerging asset class, thereby triggering a new bull market," Zheng stated. This influx, coupled with a growing sense of "fear of missing out" (FOMO) at the institutional level, Bitcoin's inherent scarcity, and expanding adoption, will collectively propel prices higher.

Macro Pressures and Price Target

The $150,000 price target is tied to Zheng's outlook on U.S. fiscal policy. He projects that U.S. national debt will climb at an unprecedented rate by 2027, creating a need for a hedge against currency devaluation.

"Serious institutional investors will need to hedge against U.S. dollar debasement by allocating to gold and Bitcoin," he said. As of the report, Bitcoin was trading at approximately $78,535.