Bitcoin could end up reaching $ 125,000 by the end of the year, but other cryptocurrencies are likely to surpass, according to CK Zheng, founder of Crypto Hedge Fund Zx Squared Capital.

“There is a connection between Bitcoin and Altcoins, but I think Bitcoin dominance will go down,” Zheng Coindesk said in an interview. “If you want a crypto -ecosystem to really develop, you can’t have 60% of the market’s value stuck in Bitcoin.”

The reason? The Trump administration already proves much friendlier to the crypto sector than its predecessor. The White House not only is considering the possibility of creating a national cryptor reserve, but Securities and Exchange Commission (SEC) has dug its lawsuits against crypto companies and protocols such as Kraken and Uniswap.

“New policies and regulations come out and trigger a lot of new ideas for innovation and shake the crypto industry,” Zheng said. “Although it may take some time to play out – through 2025 and 2026.”

Ether (ETH) and Solana (Sol) are two of the cryptocurrencies that ZX Squared sees, taking advantage of a potential new wave of innovation, especially if projects that combine artificial intelligence (AI) and crypto start. The key, Zheng said, is that these smart contract blockcainers continue to increase their flow to remain attractive (in Solana’s case) or take back the initiative (in Ethereum’s case).

Meanwhile, Bitcoin is likely to continue to behave like a risk-on-active, rise and fall into tandem with other assets as the Trump administration continues to free up new economic policies. Macroeconomics will remain firm at the steering wheel of the top cryptocurrency, Zheng said, unless the US government draws the trigger on a potential national cryptor reserve – something that could happen on the white house Crypto Summit this Friday.

“A strategic reserve in Bitcoin is something the president is interested in. He talked about it all during the campaign track and I think you will see it executed on Friday,” to trade secretary Howard Lutnick told Pavlovic today. “So Bitcoin is the one thing and then the other currency, the other crypto -tookens, I think, will be treated differently – positively, but different,” that has been added.

In any case, even with tariffs against Mexico, Canada and China, which apparently comes into force, Zheng said he did not expect Bitcoin to go below the $ 75,000 mark.

“In the short term, things are quite chopping,” Zheng said. “But this is a good opportunity for long -term investors who have been waiting to award to Bitcoin.”