Bitcoin (BTC) Could Soar to $250,000 This Year as Microsoft (MSFT) and Apple (AAPL) Enter the Crypto Arena

Bitcoin (BTC), currently around $81,000, could soar as high as $250,000 as early as this year with tech giants like Microsoft (MSFT) and Apple(AAPL) entering the crypto arena.

Charles Hoskinson, the founder of the Cardano blockchain, believes Bitcoin (BTC) could hit $250,000 as early as this year.

The cryptocurrency has recently faced headwinds from President Donald Trump’s tariffs policy, which triggered volatility in the markets.

However, Hoskinson noted that the administration is granting a 90-day reprieve on tariffs, an action that could stabilize the crypto market.

"The markets will stabilize a little bit, and they'll get used to the new normal, and then the Fed will lower interest rates, and then you'll have a lot of fast, cheap money, and then it'll pour into crypto," he told CNBC.

Rising inflation and the potential for a U.S. recession could also encourage the Fed to lower interest rates to zero or even negative.

"We've never seen negative interest rates in the U.S., but I think that's a possibility this year or next year," he said.

Recently, crypto prices have dipped as investors pulled back from riskier assets amid concerns over Trump’s tariffs and the administration’s decision to add seven Chinese companies to a trade blacklist.

Earlier this week, bitcoin dipped below $77,000 for the first time since December 2023.

However, the cryptocurrency spiked above $82,000 late Wednesday after Trump said he would reduce tariffs to 10% for most countries, allowing time for trade negotiations.

Still, bitcoin remains some 25% below its record high of over $109,000, which was reached in January.

According to crypto exchange Crypto.com, bitcoin prices rose 13% year-on-year in 2024, while volumes dropped by 20%.

The crypto market has also faced volatility amid the ongoing war in Ukraine, which began in February 2022.

"If Russia wants to invade Ukraine, it invades Ukraine. If China wants to invade Taiwan, it's going to do that. So treaties don't really work so well, and global business doesn't really work so well there. So your only option for globalization is crypto," Hoskinson said.

Moreover, upcoming U.S. legislation, including a stablecoin bill and the Digital Asset Market Structure and Investor Protection Act, could further boost the crypto industry.

These bills, currently being discussed in Congress, aim to provide clarity on the regulatory framework for digital assets.

Stablecoins, such as USD Coin and Paxos Standard, which are pegged to the U.S. dollar, could see broad adoption by the "Magnificent 7" tech giants, such as Apple, Microsoft and Amazon (AMZN), according to Hoskinson.

"We'll probably see a lull in the market for the next three to five months, and then I think around August or September, there will be a huge surge of speculative interest. And that will carry through probably another six to twelve months," he said.