Cardano founder Charles Hoskinson believes that Bitcoin can reach $250,000 by the end of the year. He thinks that tariffs are already priced in and future annoucements will be a ‘dud’ for the crypto market.
In the short term, he claimed that crypto markets will stall for three to five months as TradFi finds a new normal. Afterward, Bitcoin’s ability to transcend borders will give it a leg up over trade organizations and legacy banks.
Why Is Hoskinson Betting on Bitcoin?
The threat of Trump’s tariffs has caused a lot of turmoil in the crypto markets lately. The crypto market was always volatile, but the on-and-off tariffs introduced a new level of chaotic volatility for digital assets.
However, Cardano founder Charles Hoskinson is staking out a bold claim, stating that Bitcoin could rise to $250,000:
“Crypto benefits in the long term. Your only option for globalization is crypto. If you want to business with countries the US, Russia, [or] China doesn’t like… you can no longer do that through trade organizations or legacy banks. You can only do that through crypto. I think Bitcoin will be over $250,000 by the end of this year or next year,” Hoskinson predicted.
Essentially, Hoskinson’s bullish case for Bitcoin’s price gains is tied to the industry’s roots, which are decentralization and anonymity. Bitcoin was created in the aftermath of the 2008 crash, and it was intended to circumvent the often unfair overreach of traditional financial institutions.
If Trump’s tariffs lead to a breakdown in the global system of trade, Bitcoin could fill that void.
Naturally, Bitcoin already has a major use case in helping countries avoid US sanctions, but that doesn’t represent the entirety of Hoskinson’s argument. Ironically, in the short term, he believes that the tariffs will be a “dud.”
The Cardano founder thinks that markets will adjust to the new state of affairs, pouring cheap money into crypto. US stablecoin regulation will also help this process.
However, these short-term gains are just one piece of the puzzle. Hoskinson believes that tariffs, the Russo-Ukraine War, and other factors are all major contributors to this global breakdown that will help Bitcoin.
Crypto is currently more well-integrated into TradFi than ever, making it vulnerable to a wide array of macroeconomic concerns.
The industry is also gaining users quickly, with the total number of holders increasing 13% year over year. Bitcoin’s user base can take advantage of what Hoskinson calls “a huge wave of speculative interest” towards the end of the year.
The asset’s international positioning will keep it from being too reliant on this speculation forever.
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