Insights to Note:
- Bitcoin might reach $125,000 by the end of this year; however, it is predicted that other cryptocurrencies may outshine it.
- A welcoming approach from the Trump administration could spark innovation in the crypto field.
- Expect Ethereum and Solana to gain traction from the convergence of AI and cryptocurrency ventures, enhancing the value of their tokens.
Bitcoin appears on track to potentially hit $125,000 by year-end, yet industry expert CK Zheng, founder of ZX Squared Capital, asserts that alternative cryptocurrencies are likely to outperform Bitcoin. “There’s a correlation between bitcoin and altcoins, but I see bitcoin dominance declining. For a robust crypto ecosystem, we can’t have 60% of market value tied to bitcoin,” he stated in a recent interview.
The supportive stance from the Trump administration towards cryptocurrency is already visible, with discussions around the establishment of a national crypto reserve alongside the Securities and Exchange Commission’s (SEC) increased leniency towards crypto entities like Kraken and Uniswap.
Zheng continued, “New regulations are set to emerge, paving the way for fresh ideas and disruptive innovation across the crypto landscape, with results expected in 2025 and beyond.”
In particular, the upcoming innovations stand to benefit Ether and Solana, especially as initiatives merging AI and blockchain technology gain momentum. Zheng emphasized the need for these smart contracts to heighten their efficiency in order to retain attractiveness.
Moreover, Bitcoin is anticipated to behave like a risk asset, fluctuating with other similar assets as the Trump administration rolls out new economic measures. Zheng suggests macroeconomic conditions will heavily influence Bitcoin’s value unless the U.S. government actualizes a national crypto reserve, possibly announced at the upcoming White House Crypto Summit.
Commerce Secretary Howard Lutnick remarked, “The President is interested in a bitcoin strategic reserve, as outlined during his campaign, and this may come to fruition soon.” Despite ongoing tariffs with countries like Mexico, Canada, and China, Zheng expressed confidence that Bitcoin will maintain its value above $75,000.
“The near future may prove turbulent, yet this scenario presents a prime opportunity for long-term investors looking to invest in Bitcoin,” he added.
