Bitcoin could reach as high as $250,000 within this year, according to Charles Hoskinson, industry veteran and co-founder of Cardano. He attributes this potential rise to the entry of major tech players like Microsoft and Apple into the cryptocurrency market.
The crypto sector has faced challenges recently due to a downturn in risk assets linked to U.S. President Donald Trump’s “reciprocal tariffs” on various nations. Bitcoin dipped below $77,000 in the past week but surged past $82,000 on Wednesday after Trump decided to reduce levies to 10% for 90 days, paving the way for trade discussions.
Despite this increase, Bitcoin remains significantly below its January peak of over $100,000, even though industry experts continue to express optimism about the cryptocurrency’s future.
Hoskinson, who co-founded Ethereum and has spent over ten years in the cryptocurrency realm, is confident that Bitcoin will reach the $250,000 mark “by the end of this year or next year.”
“The tariff situation will ultimately fizzle, and people will recognize that negotiation is possible, primarily between the U.S. and China. Many will align with us, while others may side with China,” Hoskinson shared with CNBC during a recording of the “Beyond The Valley” podcast on Tuesday.
“Markets will find stability as they adjust to the new normal, and the Federal Reserve will likely lower interest rates, which could flood the market with accessible, cheap money, funneled into crypto.”
These remarks were made before Trump announced a temporary halt on reciprocal tariffs.
Hoskinson outlined several factors that could propel Bitcoin toward that target price.
Firstly, he highlighted a surge in cryptocurrency users, with the number of owners increasing by 13% year-on-year in 2024, totaling 659 million, as reported by Crypto.com.
Additionally, he noted that the global political landscape is shifting away from a “rules-based international order” toward a conflict among major powers.
“When Russia decides to invade Ukraine or China chooses to take action against Taiwan, existing treaties lose effectiveness, and international business struggles. Thus, cryptocurrencies emerge as the only viable method for globalization,” Hoskinson explained.
Thirdly, Hoskinson anticipates upcoming stablecoin regulations, particularly the Digital Asset Market Structure and Investor Protection Act, which is expected to advance through the U.S. legislative framework. This legislation aims to clarify the regulatory treatment of various types of digital assets.
Stablecoins, a category of cryptocurrency linked to fiat currency and backed by tangible assets, could incentivize major companies, known as the “Magnificent 7″—including Apple, Microsoft, and Amazon—to start integrating these assets. Hoskinson speculated that they could utilize stablecoins for employee payments in multiple countries or for minor transactions on their platforms, which would be expensive via existing payment systems. Notably, stablecoins allow for rapid transactions across global wallets.
Hoskinson believes these influences, especially the anticipated regulations and adoption of stablecoins by the Magnificent 7, will “reignite” the crypto market.
“[The crypto market] might calm down for the next three to five months, but then a significant wave of speculative interest will likely emerge around August or September, continuing for another six to twelve months,” Hoskinson forecasted.
– The full conversation with Charles Hoskinson will be available soon as part of CNBC’s Beyond The Valley podcast.
