Why a Leading Crypto Hedge Fund Believes Bitcoin’s Dominance is Set to Fall

Bitcoin Could Reach $125K, but Altcoins May Outshine It, Says ZX Squared

The Trump administration’s policies could trigger a new wave of crypto growth, according to CK Zheng, founder of crypto hedge fund ZX Squared Capital.

While Bitcoin remains on track to hit $125,000 by the end of 2025, Zheng expects altcoins to see greater upside potential.

“Bitcoin dominance is unlikely to stay at current levels,” Zheng told CoinDesk. “For the crypto space to truly expand, capital must flow beyond Bitcoin into innovative blockchain projects.”

The Trump administration’s crypto-friendly stance is fueling this shift. The White House is considering a national crypto reserve, and the SEC has dropped several lawsuits against crypto firms, signaling a softer regulatory approach.

“These evolving policies will open doors for fresh innovations and market restructuring,” Zheng explained. “While the effects won’t be immediate, we’ll see major changes unfold between 2025 and 2026.”

Ethereum (ETH) and Solana (SOL) are among the top contenders for growth, particularly as AI-driven blockchain projects gain traction. According to Zheng, Solana’s efficiency and Ethereum’s network upgrades will be crucial in attracting developers and institutional interest.

Bitcoin, meanwhile, remains tied to macroeconomic trends. Zheng noted that an official U.S. crypto reserve could be the catalyst for a major shift in sentiment, with a potential announcement at the White House Crypto Summit this Friday.

“Trump has long supported a Bitcoin strategic reserve. His campaign hinted at it repeatedly, and Friday’s event could mark the beginning of real implementation,” Commerce Secretary Howard Lutnick told The Pavlovic Today. “Bitcoin will have a leading role, but other cryptocurrencies will also be factored into the strategy.”

Despite economic uncertainties and trade disputes with Mexico, Canada, and China, Zheng is confident that Bitcoin will stay above $75,000.

“Short-term volatility is expected,” he said. “But for long-term investors, now is a strong buying opportunity for Bitcoin and select altcoins.”