Charles Hoskinson, the founder of Cardano, is making some optimistic predictions. He believes the crypto market is poised for a massive explosion, with Bitcoin possibly reaching $250K this year.
As one of Ethereum's co-founders, Hoskinson was in the space for more than a decade. He is not one to simply through out absurd predictions. His analysis is based upon 3 factors he believes will really be a powerful injection into cryptocurrency.
If Bitcoin is able to attain these levels, it is likely that everything else will follow. One of the old market sayings is "a rising tide lifts all ships". This is the mindset that could prove beneficial to all involved with crypto.
It is also a lesson in how short-term volatility (noise) can be misleading.
Let us take a look at the factors leading Hoskinson to his conclusion.
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Tariffs. Tariffs. Tariffs.
This is all we hear. To me, this is mostly a nothing burger. In a couple videos I stated "there are tariffs and there is the tariff". By this I meant that Trump imposed tariffs on the world and a tariff on China.
We already saw a pause in the tariffs yet an escalation with China.
It is actually a viewpoint that Hoskinson agrees with.
“What will happen is that the tariff stuff will be a dud, and that people will realize that the world is willing to negotiate, and it’s really just U.S. versus China. And a lot of people will side with us. Some people side with China,” Hoskinson told CNBC during a recording of the “Beyond The Valley” podcast on Tuesday.
Over the next week, we might get some insight. It is possible we see some deals struck, eliminating some of the noise affecting markets.
This however, was not part of Hoskinson's analysis. Instead, he offers up 3 reasons why be thinks crypto will experience a massive surge throughout 2025.
According to his interview with CNBC, Hoskinson cites 3 factors that will drive crypto throughout the year.
The first is self explanatory.
With the second, Hoskinson states that rules no longer mean anything on the international scale. It is coming back to power. Russia invades Ukraine. If China wants to enter Taiwan, it will.
His thought is treaties mean nothing. This will result in geo-political upheaval, providing more uncertainty. The extension here is, as global sides shift, crypto offers the neutrality needed to navigate the waters.
Finally, and this is most important, the passage of stablecoin legislation in the United States means the entry of Big Tech. We discussed this at length.
Hoskinson said the crypto market will be “reignited” by these factors, in particular the passing of the regulation and the adoption of stablecoins by the Magnificent 7.
″[The crypto market] will stall for probably the next three to five months, and then you’ll have a huge wave of speculative interest come, probably [in] August or September, into the markets, and that’ll carry through probably another six to 12 month,” Hoskinson said.
Wall Street is already making its move. This is also something we covered in great detail.
My view is the stablecoin legislation that is making its way through the United States Congress will change everything. That will instantly alter the financial system in a way we have not seen in our lifetimes. It will be the most rapid conversion in monetary history.
Big Tech already has the infrastructure. When we look at Amazon, Apple, Meta, and Google, they already have payment railed established. The integration of stablecoins will be an easy transition. I am also of the opinion that all of these companies will bring out their own stablecoin.
That means each will be able to conduct near instant, low cost financial transactions on their platforms. Each is instantly transformed into a payment network as well as banking system.
It is a move that will likely be accompanied by crypto accumulation to some degree by each company. Naturally, this will vary but a number of firms will start to hold crypto assets.
Banks are also getting into the game, as regulators start to ease up on what the previous administration did. The OCC issued a series of letters removing the agency's opposition to banks being involved in certain facets of crypto.
My biggest question comes down to swapping. So far, I cannot get a clear answer as to the regulations. However, custody services are being approved for the banks. This means they can hold cryptocurrency. From this, how big a jump is it, from a regulatory standpoint, to allow swapping?
This is something that I expect Big Tech to get involved with. As wallet systems are developed, integration of swapping services is simply adding another layer. Big Tech might not integrate with fiat the way the banks do. However, if it is all tied to stablecoins, what is the difference?
We could see things change greatly over the next year. Hoskinson appears to be in agreement with this.
