Bitcoin could end up reaching $ 125,000 by the end of the year, but other cryptocurrencies will probably exceed, according to CK Zheng, founder of the Crypto ZX Squared Capital Coverage Fund.
“There is a correlation between Bitcoin and Altcoins, but I think Bitcoin’s domain will decrease,” Zheng told Coinridesk in an interview. “If you want a really cryptographic ecosystem to develop, you can’t have 60% of the market value stuck in Bitcoin.”
The reason? The Trump administration is already demonstrating much more friendly towards the cryptographic sector than its predecessor. The White House is not only contemplating the possibility of creating a national cryptography reserve, but the stock and values commission (SEC) has been abandoning its demands against cryptographic companies and protocols such as Kraken and Unisswap.
“New policies and regulations will come out and trigger many new ideas for innovation and shake the cryptographic industry,” Zheng said. “Although it could take some time playing, until 2025 and 2026”.
Ethher (ETH) and Solana (Sun) are two of the cryptocurrencies that ZX Squared sees benefit from a new wave of potential innovation, especially if projects that combine artificial intelligence (AI) and take away cryptography. The key, Zheng said, is that these intelligent contract blockchains continue to increase their performance to remain attractive (in the case of Solana) or recover the initiative (in the case of Ethereum).
Meanwhile, Bitcoin is likely to continue behaving as a risk asset, increasing and falling together with other assets such that the Trump administration continues to unleash new economic policies. The macroeconomy will remain firmly in the steering wheel for the upper cryptocurrency, said Zheng, unless the United States government tightens the trigger for a possible national cryptography reserve, something that could happen at the Crypto summit of the White House this Friday.
“A strategic Bitcoin reserve is something that the president is interested. He spoke especially during the path of the campaign, and I think he will see him executed on Friday,” said Secretary of Commerce Howard Lutnick Al Pavlovic today.
In any case, even with tariffs against Mexico, Canada and China apparently enter into force, Zheng said he did not expect Bitcoin to be below the $ 75,000 brand.
“In the short term, things are quite choppy,” Zheng said. “But this is a good opportunity for long -term investors who have been waiting to assign Bitcoin.”
