Bitcoin could end up reaching $ 125,000 by the end of the year, but other cryptocurrencies are likely to be larger, according to CK Zheng, founder of the Crypto Hedge Fund ZX Squared Capital.
“There is a relationship between Bitcoin and Altcoins, but I think Bitcoin’s dominance will decline,” Zheng told CoinDesk in an interview. “If you want a crypto ecosystem that has really evolved, you can’t have 60% of the market value stuck in Bitcoin.”
The reason? The Trump administration proves to be more lovely towards the crypto sector than its predecessor. Not only does the White House reflect on the possibility of creating a national crypto reserve, but the Securities and Exchange Commission (SEC) has removed the suits against crypto companies and protocols such as Kraken and Uniswap.
“New policies and regulations will come out and contribute many new ideas for change and shake the crypto industry,” Zheng said. “Although it may take some time to play out – by 2025 and 2026.”
The Ether (Ether) and Solana (SOL) are two of the cryptocurrencies that ZX Squared sees benefiting from a potential new wave of change, especially if projects combine artificial intelligence (AI) and Crypto. The key, Zheng said, is that for the intelligent contract blockchains to keep their throughput increasing to remain appealing -in Solana’s case) or restoring the initiative (in Ethereum’s case).
Meanwhile, Bitcoin is likely to continue to act like a risk-on asset, rising and falling in line with other properties as the Trump administration has continued to release new economic policies. Macroeconomics will remain stable on the wheel for top cryptocurrency, Zheng said, unless the US government has pulled the trigger to a potential national crypto reserve – something that could happen at the White House Crypto Summit this Friday.
“A Bitcoin Strategic Reserve is something that the President is interested in. He talked all during the campaign campaign, and I think you’ll find it accomplished on Friday,” commercial secretary Howard Lutnick said The pavlovic now. “So bitcoin is one thing, and then the other currencies, other crypto tokens, in my opinion, can be treated differently – positive, but different,” he added.
In any case, even with tariffs against Mexico, Canada, and China seem to be taking place, Zheng said he did not expect Bitcoin to drop to a $ 75,000 mark.
“In the near term, things are a bit stinking,” Zheng said. “But this is a great opportunity for long -term investors waiting to provide in Bitcoin.”
