Bitcoin Could Reach $500K as DeFi Gains Momentum and Trump's Strategic Reserve Plans Unfold

Charles Hoskinson, the founder of Cardano ADA/USD and co-founder of Ethereum ETH/USD, has made a bold prediction regarding the price of Bitcoin BTC/USD. He believes that Bitcoin could soar to a range of $250,000 to $500,000 within the next 12 to 24 months. This optimistic forecast is based on the increasing interest from institutional investors and the potential growth of decentralized finance (DeFi) applications.

During a recent livestream conducted from Colorado, Hoskinson highlighted the significant role Bitcoin plays, positioning it not just as a digital currency but as a strategic asset for governments and institutions around the world. He spoke about Bitcoin's evolution from being perceived as a "dormant project" to becoming a revolutionary force in financial technology.

Hoskinson is optimistic about the future expansion of Bitcoin's ecosystem, particularly with the rise of DeFi layers that could enhance its functionality. He remarked that many governments are starting to view Bitcoin as a strategic reserve asset, comparing its potential role to that of gold as a historical store of value.

Furthermore, Hoskinson stated his belief that Bitcoin-based DeFi will surpass all other ecosystems in the next 24 to 36 months. This perspective aligns with the broader trend of institutional investment flowing into cryptocurrency markets.

Recently, President-elect Donald Trump spoke about his plans to establish the United States as the "crypto capital of the planet." He has proposed the creation of a Bitcoin strategic reserve that would utilize the cryptocurrency held by the government, further indicating the potential for Bitcoin's integration into national financial strategies.

The cryptocurrency market has been experiencing fluctuations, with Bitcoin showing sizable price movements. Recent reports indicate that long-term holders have sold off 728,000 coins over a 30-day period, marking the largest sell-off since April. Despite this volatility, many market analysts maintain a cautiously optimistic outlook on Bitcoin's future.

Haider Rafique, the Global Chief Marketing Officer at OKX exchange, noted that the average holding price for Bitcoin hovers around $30,000, suggesting significant profit potential for investors. While Hoskinson remains optimistic about Bitcoin's trajectory, he continues to emphasize the role of Cardano within the cryptocurrency landscape, positioning it as a "spiritual successor to Bitcoin". He is focused on promoting the development of hybrid applications that can leverage Bitcoin's capabilities, showcasing his commitment to innovation in the blockchain sector.

As of now, Bitcoin, which holds the title of the leading cryptocurrency by market capitalization, is trading at $93,201.11. The price has seen a 1.74% increase in the last 24 hours and a 0.63% rise over the past week, according to market data.

Bitcoin, DeFi, Trump