Bitcoin could end up reaching $ 125,000 by the end of the year, but other cryptocurrencies will probably outperform, according to CK Zheng, founder of the Crypto Hedge Fund Zx Squared Capital.
“There is a correlation between Bitcoin and Altcoins, but I think that the domination of Bitcoin will drop,” Zheng told Coindesk in an interview. “If you want a cryptographic ecosystem to develop really, you cannot have 60% of the market value stuck in Bitcoin.”
The reason? The Trump administration is already much more friendly towards the cryptography sector than its predecessor. Not only does the White House envisage the possibility of creating a national crypto reserve, but the Securities and Exchange Commission (SEC) abandoned its prosecution against cryptographic societies and protocols like Kraken and United.
“New policies and regulations will be released and trigger many new ideas for innovation and will shake the cryptography industry,” said Zheng. “Although it can take some time to play – until 2025 and 2026.”
Ether (ETH) and Solana (floor) are two of the cryptocurrencies that Zx Squared saw a new wave of potential innovation, in particular if projects combining artificial intelligence (AI) and the take-off of the crypto. The key, said Zheng, is that these blockchains of smart contracts continue to increase their flow in order to remain attractive (in the case of Solana) or to take up the initiative (in the case of Ethereum).
In the meantime, Bitcoin is likely to continue to behave like an asset at risk, to go up and to fall into tandem with other assets such as the Trump administration continues to release new economic policies. The macroeconomics will remain firmly behind the wheel of the upper cryptocurrency, said Zheng, unless the American government attracts the trigger of a potential national reserve of cryptography – something that could happen at the top of white house cryptography this Friday.
“A Bitcoin strategic reserve is something interested in the president. He talked about it during the campaign track, and I think you will see her executed on Friday,” said the secretary of commerce, then the other currencies, the other crypto tokens, so I think I am treated – positively, positively, but differently, “he added.
In any case, even with prices against Mexico, Canada and China that apparently maintained, Zheng said it did not expect Bitcoin to be below the $ 75,000 mark.
“In the short term, things are quite jerky,” said Zheng. “But this is a good opportunity for long -term investors who were waiting to allocate to Bitcoin.”
