Charles Hoskinson, Cardano founder, stated in a CNBC podcast interview this week that Bitcoin is set for a significant price increase to $250,000 within this year.
He attributes this forecast to major technology companies entering the crypto market, clearer regulations coming into effect, and changes in central bank strategies.
Bitcoin’s Current Market Situation and Recent Volatility
Bitcoin’s price was around $81,800 at the time of reporting, showing a roughly 12% decrease year-to-date, according to TradingView data.
The past week saw increased volatility for Bitcoin, mainly caused by President Trump‘s new tariffs that impacted global stock markets.
Although Bitcoin has shown some independence, it has largely followed the trends of tech stocks.
Trump’s Tariff Action Prompts Bitcoin Price Recovery
After falling below $75,000 earlier this week, Bitcoin’s price rose back above $82,000 on Wednesday.
This recovery happened after Trump announced a temporary tariff reduction of 10% for most countries during a 90-day negotiation period.
US stock markets also rebounded following this announcement.
Tariffs Not Expected to Cause Long-Term Trade War with Hoskinson
Hoskinson does not believe the tariffs will lead to a drawn-out global trade war with widespread negative consequences.
He anticipates that “the tariff stuff will be a dud” and that it will become clear that global negotiation is possible, indicating that the issue is primarily between the US and China.
Federal Reserve Rate Cuts to Increase Market Liquidity
Hoskinson projects the global economy will adjust to a “new normal.”
Following this adjustment, he expects the Federal Reserve to cut interest rates, making capital less expensive.
This rate reduction will likely result in more “fast, cheap money” flowing into higher-risk investments, including cryptocurrencies.
New US Regulations Expected to Support Institutional Adoption
Cardano’s founder expressed optimism regarding new US legal frameworks, particularly the proposed stablecoin legislation and the Digital Asset Market Structure and Investor Protection Act.
He believes these regulations could provide the necessary clarity for institutional investment to increase within the crypto space.
Tech Giants Anticipated to Enter Crypto Market
Hoskinson expects major technology firms like Apple, Microsoft, and Amazon to enter the cryptocurrency sector, specifically using stablecoins.
He suggests they might adopt stablecoins for international employee payments or small transactions.
Geopolitics and User Growth Driving Bitcoin Demand
The Ethereum co-founder also highlighted continued user growth and geopolitical changes as further factors in increasing demand for Bitcoin.
He believes the global order is moving from a rules-based system to an era of “great powers conflict.”
In this environment, cryptocurrency becomes a protective measure against reduced faith in institutions and agreements.
Anticipated Market Surge Later in the Year
Hoskinson predicts a period of market consolidation for “probably the next three to five months.”
He then anticipates a “giant wave of speculative interest” to enter the markets, likely around “August or September.”
He forecasts this surge to continue for roughly “another 6 to 12 months.”
Also Read: Cardano’s Charles Hoskinson Collaborates With Lawmakers on Crypto Rules
