Bitcoin may be on track for a massive rally, potentially hitting $250,000 this year. Charles Hoskinson, the founder of Cardano, shared this prediction in a recent CNBC podcast. His bullish outlook comes as tech giants enter the crypto space, regulations become clearer, and central banks shift their monetary policies.
At the time of writing, Bitcoin traded near $81,800, reflecting a 12% decline year-to-date, according to TradingView. The largest cryptocurrency has faced volatility, particularly in response to economic policies and global market fluctuations.
Impact of Tariffs and Recent Market Movements
Recent tariffs imposed by former President Donald Trump have influenced Bitcoin’s price movements. These sweeping trade measures created uncertainty in equity markets, indirectly affecting crypto assets. Despite some signs of decoupling, Bitcoin has generally followed the performance of tech stocks.
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Earlier this week, Bitcoin briefly dropped below $75,000. However, after Trump announced a temporary tariff reduction to 10% for most nations, Bitcoin rebounded above $82,000. US stock markets also reacted positively to the news, recovering from earlier losses.
Hoskinson does not expect these tariffs to trigger a prolonged global trade war. Instead, he believes the world economy will stabilize under a “new normal.”
Federal Reserve’s Role in Crypto’s Future
Hoskinson anticipates the Federal Reserve will eventually lower interest rates. This move would make borrowing cheaper, increasing liquidity in the financial system. As a result, riskier assets, including cryptocurrencies, could attract more investment.
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Hoskinson remains optimistic about upcoming US crypto regulations. He highlights the pending stablecoin legislation and the Digital Asset Market Structure and Investor Protection Act as crucial developments. These laws, if passed, could provide regulatory clarity, encouraging institutional investors to enter the market.
Tech Giants Entering the Crypto Space
Hoskinson foresees major technology companies such as Apple, Microsoft, and Amazon integrating cryptocurrencies into their operations. He believes they will likely adopt stablecoins for international transactions and microtransactions. If these corporations embrace digital assets, mainstream adoption could accelerate significantly.
Beyond economic policies, Hoskinson points to global geopolitical changes as another driver of Bitcoin demand. He suggests the world is transitioning from a rules-based international order to an era of “great power conflicts.” As trust in traditional institutions and international agreements declines, Bitcoin could serve as a hedge against instability.
