In a recent interview with CNBC Podcast, Charles Hoskinson, co-founder of Ethereum and Cardano, said that the price of Bitcoin (CRYPTO: BTC) could reach $250,000 this year. This is a staggering 194% increase from the current price of $85,000.
So what makes Hoskinson so confident that Bitcoin will see a major surge in the second half of 2025?
Where to invest $1,000 now? Our team of analysts just revealed what they believe are the 10 best stocks to buy right now. Continue reading »
Bitcoin Adoption
Hoskinson said the main reason for optimism is the growing popularity of Bitcoin. He pointed out that there are now 659 million cryptocurrency users worldwide, a year-on-year increase of 13%. Cryptocurrency is a truly global phenomenon, so even if Bitcoin adoption stagnates in the United States due to slowing economic growth, there is still strong demand for it around the world.
Both individual and corporate investors are actively embracing Bitcoin. Strategy (NASDAQ: MSTR) — formerly MicroStrategy — is leading the charge. As of March 31, the company held 528,185 bitcoins, worth nearly $45 billion at current prices, making it the world’s largest corporate bitcoin holder. More and more companies are following Strategy’s lead, hoping to boost their stock market valuations by adding bitcoin to their balance sheets.
Not to be outdone, sovereign governments are also getting in on the action. President Donald Trump, who made bitcoin part of his campaign platform during the 2024 election, has been looking for new ways for the federal government to integrate cryptocurrencies into the financial system. The most notable move, of course, was the strategic bitcoin reserve established in March of this year.
New Crypto Legislation
Another key catalyst, Hoskinson said, is new cryptocurrency legislation in 2025 that will finally set the rules for the cryptocurrency industry. The first major piece of legislation will be related to stablecoins, which have grown into a $200 billion industry. The second major piece of legislation is the Digital Asset Market Structure and Investor Protection Act.
The two new pieces of legislation are crucial because the U.S. currently lacks any comprehensive cryptocurrency framework and can only rely on the SEC’s “mandatory regulation” policy. This is in stark contrast to other parts of the world. For example, the European Union recently implemented a comprehensive cryptocurrency framework called MiCA by the end of 2024.
Will the “Seven” adopt Bitcoin?
There is another important reason why this new legislation is crucial: in theory, it will ensure that cryptocurrencies are safe enough for the largest companies in the United States. In fact, Hoskinson believes that several of the seven largest American technology companies may begin to dabble in the cryptocurrency field once the new legislation takes effect.
In Hoskinson’s view, the biggest opportunity for the Big Seven may lie in stablecoins that are pegged 1:1 to the U.S. dollar. These “digital dollars” may be the key to paying workers in different countries while enabling faster and more efficient cross-border transactions.
For cryptocurrency newbies, this may sound far-fetched. However, as long as the price of Bitcoin rises, the momentum of large technology companies embracing cryptocurrencies will increase.
For example, last December, Microsoft (NASDAQ:MSFT) shareholders voted to approve a shareholder proposal that would require the company to include Bitcoin on its balance sheet. While Microsoft ultimately rejected the proposal, it now appears that other tech companies may be planning similar shareholder proposals.
Impact of Tariffs on Bitcoin
Hoskinson also offers some interesting perspectives on the current uncertainty surrounding tariffs and the looming threat of a trade war. He is far less pessimistic than many analysts, even arguing that “tariffs won’t work.” In his view, many of the worst fears of a full-blown trade war are overblown.
Based on his view of the current economic situation, the cryptocurrency market will stagnate in the coming months as it awaits the Fed’s actions and further clarity on tariff policy. Once the Fed cuts interest rates, it could lead to an influx of “cheap, fast money” into the cryptocurrency market, pushing up the price of Bitcoin. He fully expects a speculative rally in cryptocurrencies by September, which could take Bitcoin to a target price of $250,000 by the end of 2025.
Can Bitcoin really reach $250,000?
There’s obviously a lot to read into here. On one hand, there is a popular storyline before January 2025 based on the crypto optimism surrounding the Trump administration. On the other hand, there is a popular storyline among crypto enthusiasts based on a vision where everyone owns crypto and everything runs on blockchain rails. Then there is tariff uncertainty and the possibility of a global trade war.
How much these key events will affect the price of Bitcoin in 2025 is up to you. A surge from the current price of $85,000 to $250,000 – a 194% surge in less than eight months – is undoubtedly a tall order. But if there is any digital asset in the world that can do it, it is Bitcoin.
Related topics:
