Charles Hoskinson, a co-founder of Ethereum and the current leader of the Cardano blockchain, has forecasted that Bitcoin may hit a price of $250,000 by the end of this year or the next. This prediction, shared during a CNBC interview, comes even amidst a downturn in the broader financial markets, including cryptocurrencies.
Reasons for Bitcoin’s Potential Rise to $250,000 in Under Two Years
Hoskinson pointed out that increasing geopolitical tensions and shifting trade relations are creating favorable conditions for decentralized networks such as Bitcoin. He expressed that the world appears to be transitioning “from a rules-based international order to a great powers conflict,” implying that this change will expose the shortcomings of conventional banking and trading systems, thus propelling more transactions towards cryptocurrencies.
“If Russia chooses to invade Ukraine, it does so. If China decides to invade Taiwan, it will proceed. Treaties are ineffective, and global commerce falters in such contexts. Therefore, cryptocurrency remains the sole option for globalization,” Hoskinson conveyed during his CNBC interview.
He also highlighted the steep sell-off in cryptocurrencies and other speculative assets, a situation partially influenced by former US President Donald Trump’s reciprocal tariffs on nations globally. Over the past week, Bitcoin fell below $77,000 but briefly exceeded $83,000 on Wednesday, remaining well below its all-time high above $100,000 reached in January. Nevertheless, Hoskinson remains optimistic: “I firmly believe Bitcoin will exceed $250,000 by the end of this year or next.”
Among the elements that may trigger such a significant price increase, Hoskinson cited the possibility of the Federal Reserve lowering interest rates in reaction to market pressures. “This scenario would lead to a substantial influx of cheap, quick capital into cryptocurrency,” he explained, highlighting how additional liquidity could rekindle enthusiasm for digital assets. The chance of major tech firms like Microsoft and Apple entering the crypto market also contributes to his bullish sentiment.
Additionally, Hoskinson expressed optimism regarding potential new regulations. He specifically mentioned upcoming stablecoin legislation and the Digital Asset Market Structure and Investor Protection Act, both of which are advancing through Congress. He believes that these regulatory advancements could streamline the cryptocurrency market and facilitate institutional adoption.
Stablecoins, which are linked to fiat currencies and supported by real-world assets, could appeal significantly to large tech companies aiming to enable swift, cost-effective global transactions. “The stablecoin legislation in particular could prompt the ‘Magnificent 7’ companies to start adopting these assets,” he noted, referencing major tech giants like Apple, Microsoft, Amazon, and others.
Hoskinson further contended that once these regulatory frameworks become more defined, the market might “stagnate for about the next three to five months,” preceding “a massive wave of speculative interest” returning to the sector around late summer or fall. In his perspective, this resurgence of enthusiasm, coupled with a more stable geopolitical environment and clearer regulatory conditions, could propel Bitcoin’s price to as high as $250,000.
As of the latest update, BTC was trading at $81,138.
