Crypto Innovation Accelerates Under Trump, Bitcoin May Hit $125K but Altcoins Poised to Lead

The Trump administration’s pro-crypto stance is setting the stage for rapid industry growth, according to CK Zheng, founder of crypto hedge fund ZX Squared Capital.

While Bitcoin could surge to $125,000 by the end of 2025, Zheng believes alternative cryptocurrencies are positioned for even stronger gains.

“Bitcoin and altcoins move together, but I expect bitcoin dominance to decline,” Zheng told CoinDesk. “For crypto to mature as an industry, value can’t remain overly concentrated in bitcoin.”

The Trump administration’s regulatory shift is a key factor. The White House is exploring the creation of a national crypto reserve, and the SEC has rolled back enforcement actions against major crypto firms like Kraken and Uniswap.

“These policy changes will fuel new innovations and drive structural shifts in the market,” Zheng said. “It won’t happen overnight, but through 2025 and into 2026, we’ll see major developments.”

Ethereum (ETH) and Solana (SOL) are among the cryptocurrencies ZX Squared expects to benefit the most, particularly as AI-integrated blockchain projects gain traction. Zheng emphasized that smart contract networks must continue improving scalability—Solana to maintain its high-speed transactions and Ethereum to regain lost ground.

Bitcoin, on the other hand, will likely continue to act as a risk-on asset, influenced by macroeconomic conditions. The biggest potential catalyst for BTC, Zheng noted, could be a formal U.S. national crypto reserve, with an announcement possibly coming at Friday’s White House Crypto Summit.

“Trump has been vocal about a bitcoin strategic reserve. He discussed it extensively on the campaign trail, and I expect concrete steps to be taken this week,” Commerce Secretary Howard Lutnick told The Pavlovic Today. “Bitcoin will play a central role, but other digital assets will also have a place under a structured framework.”

Despite market fluctuations and ongoing trade tensions with Mexico, Canada, and China, Zheng remains confident that bitcoin will hold above $75,000.

“In the short term, we’ll see volatility,” he said. “But for long-term investors, this is an ideal accumulation period for bitcoin and key altcoins.”