Chinese Analyst Says, “I Expect Big Change,” Shares Bitcoin Price Prediction and Predictions

Bitcoin could reach $125,000 by the end of the year, but its dominance in the cryptocurrency market will likely wane as other digital assets outperform, according to CK Zheng, founder of crypto hedge fund ZX Squared Capital.

Analyst Expects Bitcoin Dominance in the Market to Decrease

“There is a correlation between Bitcoin and altcoins, but I think Bitcoin dominance will decrease,” Zheng said in an interview. “If you really want a crypto ecosystem to thrive, you can’t let 60% of the market cap get trapped in Bitcoin.”

The shift in Bitcoin’s dominance is being influenced by the policies of the Trump administration, which has taken a noticeably friendlier stance toward the crypto sector compared to its predecessor. The White House is reportedly considering establishing a national crypto reserve, while the Securities and Exchange Commission (SEC) has begun dropping lawsuits against major crypto companies and protocols like Kraken and Uniswap.

“New policies and regulations will emerge and trigger many new ideas for innovation and shake up the crypto industry,” Zheng said. “But it may take some time around 2025 to 2026 for this to happen.”

ZX Squared Capital predicts that cryptocurrencies such as Ether (ETH) and Solana (SOL) will benefit from these regulatory changes and the new wave of innovation, particularly those integrating artificial intelligence (AI) and blockchain technology.

“What’s important is that these smart contract blockchains continue to increase their throughput to remain attractive,” Zheng said. “For Solana, that means maintaining its current momentum, while Ethereum needs to regain its initiative.”

Despite Bitcoin’s potential upside, its performance will depend on macroeconomic trends and the evolving economic policies of the Trump administration. However, a potential shift could emerge from the White House Crypto Summit scheduled for this Friday.

*This is not investment advice.