Bitcoin’s Grip on the Market May Weaken, Says This Crypto Hedge Fund

Bitcoin Eyes $125K, but Altcoins Could Steal the Show, Says ZX Squared Founder

The Trump administration’s favorable stance on crypto is paving the way for industry-wide growth, according to CK Zheng, founder of crypto hedge fund ZX Squared Capital.

While Bitcoin could rally to $125,000 by the end of 2025, Zheng believes altcoins will take center stage, outperforming the leading cryptocurrency.

“Bitcoin and altcoins tend to move together, but I foresee a decline in bitcoin’s market dominance,” Zheng told CoinDesk. “For a truly flourishing crypto ecosystem, market value needs to be spread more evenly across different projects.”

A major driver of this shift is the Trump administration’s more crypto-friendly approach compared to its predecessor. The White House is actively considering a national crypto reserve, and recent moves by the SEC—including dropping lawsuits against firms like Kraken and Uniswap—suggest a more accommodating regulatory landscape.

“These policy shifts will drive new innovation and likely shake up the current market structure,” Zheng said. “While the full impact may take time, I expect significant changes through 2025 and 2026.”

Ethereum (ETH) and Solana (SOL) stand to benefit the most, especially as blockchain-based AI integrations gain traction. Zheng stressed that for these smart contract platforms to stay competitive, Ethereum must enhance efficiency while Solana must maintain its high throughput.

Bitcoin, meanwhile, is expected to remain highly sensitive to macroeconomic developments. Zheng pointed out that a potential game-changer could be the official establishment of a national crypto reserve, a topic expected to be addressed at Friday’s White House Crypto Summit.

“Trump has long been interested in a Bitcoin strategic reserve. He spoke about it extensively during his campaign, and we may see real action on this as early as Friday,” Commerce Secretary Howard Lutnick told The Pavlovic Today. “Bitcoin will play a key role, but other cryptocurrencies will also be integrated in a structured manner.”

Even with trade tensions rising due to tariffs on Mexico, Canada, and China, Zheng is confident that bitcoin will not fall below $75,000.

“The near-term market is volatile,” he said. “But for long-term investors, this is a prime opportunity to accumulate both bitcoin and select altcoins.”

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