Bitcoin’s Future Predictions

Bitcoin could reach $125,000 by the year-end, but other cryptocurrencies may outperform, states CK Zheng, founder of crypto hedge fund ZX Squared Capital.

Zheng noted a correlation between Bitcoin and altcoins, but anticipates Bitcoin’s dominance will decline. He believes, “If you want a crypto ecosystem to really develop, you can’t have 60% of the market’s value stuck in bitcoin.”

The Trump administration is more crypto-friendly than the previous one, with discussions about a national crypto reserve and the SEC easing lawsuits against companies like Kraken and Uniswap.

Zheng stated, “New policies and regulations will come out and trigger a lot of new ideas for innovation and shake up the crypto industry,” although this may not unfold until 2025 or 2026.

Ether (ETH) and Solana (SOL) are expected to benefit from this innovation wave, particularly if AI and crypto projects thrive. Zheng emphasized the importance of increasing throughput in smart contract blockchains for their competitiveness.

Currently, Bitcoin is behaving like a risk-on asset, fluctuating alongside other assets as the Trump administration introduces new economic policies. Macroeconomics will heavily influence Bitcoin unless a national crypto reserve is established during the upcoming White House Crypto Summit.

Commerce Secretary Howard Lutnick mentioned, “A bitcoin strategic reserve is something the President’s interested in… you’re going to see it executed on Friday.” He elaborated that while Bitcoin may be categorized one way, other cryptocurrencies will be treated positively but differently.

Despite tariffs against Mexico, Canada, and China, Zheng does not foresee Bitcoin dropping below $75,000. He remarked, “In the near term, things are quite choppy. But this is a good opportunity for long-term investors who have been waiting to allocate to bitcoin.”