Bitcoin Eyes $125K, But Altcoins Could Steal the Show

Bitcoin (BTC) could hit $125,000 by year-end, but altcoins may outperform, says CK Zheng, founder of ZX Squared Capital. He predicts Bitcoin dominance will decline as the crypto ecosystem expands.

"For real industry growth, you can’t have 60% of the market’s value locked in Bitcoin," Zheng told CoinDesk.

The shift is fueled by the Trump administration’s pro-crypto stance. The White House is considering a national crypto reserve, while the SEC has dropped lawsuits against major players like Kraken and Uniswap.

"New policies will spark innovation and shake up the industry through 2025 and 2026," Zheng noted.

Ethereum (ETH) and Solana (SOL) are poised to benefit, particularly with AI-integrated projects gaining traction. Scalability remains crucial—Solana must sustain its high throughput, while Ethereum must reclaim its competitive edge.

Meanwhile, Bitcoin continues acting as a risk-on asset, responding to economic shifts under Trump’s policies. However, if the U.S. moves forward with a national Bitcoin reserve, BTC could see unprecedented institutional demand. Commerce Secretary Howard Lutnick confirmed that President Trump is keen on executing the plan, with an announcement expected at the upcoming White House Crypto Summit.

Even with looming tariffs on Mexico, Canada, and China, Zheng sees Bitcoin staying above $75,000.

"Short-term volatility is expected, but long-term investors have a great entry point," he said.

With evolving regulations and increasing institutional interest, the crypto market could be on the verge of a major transformation. Investors should stay alert as Bitcoin’s dominance shifts and new opportunities emerge.