ANALYSIS: Bitcoin may reach $125,000 by year's end, with torrents performing perhaps even brighter

Bitcoin (BTC) could reach $125,000 by the end of the year, but other cryptocurrencies could outperform, says CK Zheng, founder of cryptocurrency hedge fund ZX Squared Capital. Zheng does not expect Bitcoin to fall below $75,000, despite the US tariff policy on Mexico and Canada appearing to be in effect. He said, ‘The market is volatile in the short term, but for long-term investors, this is a good opportunity to allocate to bitcoin.’ In an interview with CoinDesk, Zheng noted, ‘There is a correlation between bitcoin and torrents, but I think bitcoin's market dominance will decline. If you want the cryptocurrency ecosystem to really grow, you can't have 60 per cent of the market value concentrated in Bitcoin.’ According to Zheng, ‘New policies and regulations will drive a lot of innovative ideas and shake up the cryptocurrency industry. Though it may take some time for this to become apparent - possibly throughout 2025 and 2026.’ ZX Squared Capital is bullish on cryptocurrencies such as Ether (ETH) and Solana (SOL), believing that they will benefit from a new wave of innovation, especially projects combining AI and cryptocurrencies.Zheng emphasises that these smart contract blockchains will need to continually increase throughput in order to either maintain traction (in the case of Solana) or regain the initiative (for Ether).