Crypto Hedge Fund Predicts Bitcoin Dominance Will Decline
CK Zheng, founder of ZX Squared Capital, predicts Bitcoin could reach $125,000 by year-end but expects altcoins to outperform. Key points include:
- Bitcoin dominance is likely to decline as it constitutes 60% of the market.
- The Trump administration is more supportive of crypto, considering a national crypto reserve.
- The SEC has reduced lawsuits against crypto firms like Kraken and Uniswap.
- New regulations may lead to innovation in the crypto sector, expected to unfold through 2025-2026.
- Ether and Solana are anticipated to benefit from advancements combining AI and crypto.
- Bitcoin will behave as a risk-on asset, influenced by macroeconomic policies.
- A potential announcement regarding a bitcoin strategic reserve could occur at the upcoming White House Crypto Summit.
- Zheng does not foresee Bitcoin dropping below $75,000 despite ongoing trade tariffs.
- Current market conditions present opportunities for long-term investors.