In a recent podcast interview with CNBC, Charles Hoskinson, the co-founder of both Ethereum and Cardano, suggested that Bitcoin (BTC +3.11%) could hit a price of $250,000 this year. That's an astounding 194% increase from its current price of $85,000.
So what makes Hoskinson so confident that Bitcoin is poised for a major rally in the second half of 2025?
Bitcoin adoption
The primary reason for optimism, says Hoskinson, is the growing rate of Bitcoin adoption. As he points out, there are now 659 million crypto users worldwide. That's up 13% on a year-over-year basis. Crypto is a truly global phenomenon, so even if Bitcoin adoption in the United States stalls out due to the slowing of economic growth, there is still demand for it worldwide.
CRYPTO: BTC
Key Data Points
Individual investors are embracing Bitcoin, and so are corporations. Strategy (MSTR 4.00%), the company formerly known as MicroStrategy, is leading the way. As of March 31, it held 528,185 Bitcoins worth nearly $45 billion at today's prices, making it the largest corporate holder of Bitcoin in the world. A growing number of companies are starting to follow in its footsteps, with the goal of boosting their stock market valuations by adding Bitcoin to the balance sheet.
Image source: Getty Images.
And not to be outdone, sovereign governments are also getting into the mix. President Donald Trump, who made Bitcoin part of his platform during the 2024 election, has been looking for new ways that the federal government can integrate crypto into the financial system. The highest-profile move, of course, was the establishment of a Strategic Bitcoin Reserve in March.
New crypto legislation
Another key catalyst, says Hoskinson, is new crypto legislation in 2025 that will finally lay out the rules of the road for the crypto industry. The first major piece of legislation will be one 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.
These two new pieces of legislation are important because the U.S. currently does not have any comprehensive framework for crypto, and has been forced to rely on a policy of "regulation by enforcement" by the Securities and Exchange Commission. That's in sharp contrast to the rest of the world. The European Union, for example, recently put into place a comprehensive crypto framework called MiCA at the end of 2024.
Will the "Magnificent Seven" adopt Bitcoin?
This new legislation is vital for another important reason: It will theoretically make crypto safe enough for America's biggest corporations. In fact, Hoskinson thinks several of the "Magnificent Seven" tech companies could start to get involved with crypto as soon as the new legislation goes into effect.
As Hoskinson sees it, the biggest opportunities for the Magnificent Seven could be in stablecoins, which are pegged 1-to-1 to the U.S. dollar. These "digital dollars" could be the key to paying workers in different countries, while enabling faster and more efficient cross-border transactions.
That might sound far-fetched for anyone new to crypto. However, as long as the price of Bitcoin goes up, momentum will build for major tech companies to embrace crypto.
For example, in December, Microsoft (MSFT +1.46%) shareholders voted on a shareholder proposal calling on the company to add Bitcoin to its balance sheet. While Microsoft ultimately voted "no" on the proposal, it now looks like similar shareholder proposals could be on the way for other tech companies.
Impact of tariffs on Bitcoin
Hoskinson also has some interesting thoughts on the current tariff uncertainty, and the threat of a looming trade war. He's not nearly as bearish as many analysts are, even going so far as to say that "the tariff stuff will be a dud." As he sees it, many of the worst fears of a full-blown trade war are overdone.
Based on his view of the current economic situation, the crypto market will stall out over the next few months, as it awaits action from the Fed and more clarity around tariffs. As soon as the Fed lowers interest rates, it could lead to "cheap, fast money" pouring into crypto, thereby pushing up the price of Bitcoin. He's fully expecting a speculative crypto rally by September, which could lead to Bitcoin hitting that $250,000 price target by the end of 2025.
Can Bitcoin really hit $250,000?
There's obviously a lot to unpack here. There is the storyline that was popular before January 2025, based on the pro-crypto optimism surrounding the Trump White House. There is also the storyline that's always been popular with crypto enthusiasts, based on a vision of the world where everyone owns crypto, and everything runs on blockchain rails. And, layered in on top of that, you have tariff uncertainty and the potential for a global trade war.
It's up to you to decide just how much of an impact each of these key storylines will have on the price of Bitcoin in 2025. Getting from a current price of $85,000 to $250,000 -- an epic 194% increase in price in less than eight months -- is a big ask. But if there's any digital asset in the world that's capable of it, it's Bitcoin.
