ZX Squared Founder Predicts Bitcoin Decline in Market Dominance Amid Trump’s Crypto Push
The Trump administration is set to drive a new wave of crypto innovation, according to ZX Squared Capital founder CK Zheng.
Bitcoin could reach $125,000 by the end of the year, but alternative cryptocurrencies may outperform, Zheng told CoinDesk in an interview.
“There’s a correlation between bitcoin and altcoins, but I believe bitcoin dominance is poised to decline,” Zheng said. “For the crypto ecosystem to truly thrive, it can’t have 60% of its value concentrated in bitcoin.”
A key factor is the Trump administration’s increasingly favorable stance on crypto. The White House is not only considering establishing a national crypto reserve but also fostering a more lenient regulatory environment. The Securities and Exchange Commission (SEC) has recently dropped lawsuits against major crypto firms, including Kraken and Uniswap.
“New policies and regulations will spur innovation and reshape the crypto industry,” Zheng noted. “It may take time to unfold, likely spanning 2025 and 2026.”
ZX Squared expects Ethereum (ETH) and Solana (SOL) to benefit the most from this evolving landscape, especially if AI-powered crypto projects gain traction. Zheng emphasized that for smart contract platforms to remain competitive, they must enhance scalability—Solana to sustain its momentum and Ethereum to reclaim dominance.
Meanwhile, bitcoin is likely to continue trading as a risk-on asset, reacting to economic shifts under the Trump administration. Macroeconomic factors will remain the primary driver for BTC, Zheng said, unless the U.S. officially implements a national crypto reserve—a topic expected to be addressed at the White House Crypto Summit this Friday.
“A bitcoin strategic reserve is something the President is seriously considering. He discussed it throughout his campaign, and I believe you’ll see movement on this by Friday,” Commerce Secretary Howard Lutnick told The Pavlovic Today. “Bitcoin will play a key role, but other cryptocurrencies will be handled differently—still positively, but through a distinct approach.”
Despite ongoing market volatility and new tariffs on Mexico, Canada, and China, Zheng remains confident that bitcoin will hold above $75,000.
“In the short term, conditions remain turbulent,” he said. “But this presents a valuable opportunity for long-term investors looking to gain exposure to bitcoin
