Bitcoin Surges 11% to $118,195 as Altcoins Rally on US Legislative Hopes

Bitcoin's price surged past $118,000 for the first time, reaching a record $118,195. This surge contributed to a broader rally across the cryptocurrency market, with the overall market capitalization climbing to approximately $3.75 trillion. Bitcoin alone accounted for over 62% of this total value, highlighting its dominance in the digital asset landscape.

Charles Hoskinson, the founder of Cardano, made a significant prediction regarding the future of cryptocurrencies. He forecasted a massive influx of capital into altcoins, suggesting that these digital assets are poised to generate investments totaling trillions of dollars. Hoskinson also reaffirmed his earlier prediction that Bitcoin could reach $250,000 by early 2026. This optimistic outlook comes as the cryptocurrency market continues to experience bullish momentum, with Bitcoin's price reaching new all-time highs.

Hoskinson's remarks coincided with notable gains in several major altcoins. Cardano (ADA) experienced a nearly 13% increase in the last 24 hours, while Ethereum (ETH) rose by 8.5% and XRP climbed by 7.1%. This performance reflects growing investor confidence in the cryptocurrency sector, particularly as legislative support for digital assets gains traction.

Hoskinson attributed the overall increase in market activity to the introduction of two major crypto-related legislative bills in the United States: the GENIUS Act and the CLARITY Act. The GENIUS Act aims to provide regulatory clarity to stablecoins, while the CLARITY Act addresses the broader structure of the digital asset market. These legislative proposals are expected to shape the next phase of crypto adoption and influence investor confidence across the sector.

The rise in Bitcoin's price was accompanied by a significant amount of short liquidation, with nearly $575 million in positions being sold. This liquidation helped boost the altcoin market and presented traders with a bullish outlook, following the announcement of legislative progress and increased institutional activity.

Hoskinson's prediction of Bitcoin reaching $250,000 is based on several factors, including the anticipated passage of key legislative proposals during the upcoming "Crypto Week." These proposals, which include the GENIUS Stablecoin Act and the Digital Asset Market Structure (CLARITY) Act, are expected to provide much-needed regulatory clarity and foster a more secure environment for digital asset businesses and investors. Hoskinson believes that the passage of these acts could unlock significant institutional capital, paving the way for the next major phase in crypto adoption.

Hoskinson has previously cited rising institutional stablecoin adoption, growing demand for BTC Treasury, and expectations of Fed rate cuts as factors that could drive Bitcoin's price to $250,000. He anticipates that once the Fed lowers interest rates, there will be a surge of fast, cheap money pouring into the crypto market, further fueling its growth.

The GENIUS Stablecoin Act aims to establish a regulatory framework for stablecoins, while the CLARITY Act seeks to delineate the regulatory responsibilities for the US SEC and US CFTC, reducing legal anomalies and fostering a more transparent framework. These legislative proposals have garnered support from industry veterans, who have been advocating for greater regulatory clarity.

Hoskinson's prediction aligns with the broader optimism in the crypto market, which has seen Bitcoin's price rise to $117,200. The market's bullish momentum is further fueled by the anticipation of massive institutional inflows, which Hoskinson refers to as a "gigachad bull run." He believes that with the upcoming regulatory clarity, this explosive growth could be imminent.

Hoskinson's prediction of Bitcoin reaching $250,000 is not new; he has been consistent in his forecast, stating earlier this year that BTC could rally to this price point within 12 to 24 months. With another 100% rally in sight, Bitcoin could reach close to a $5 trillion market cap, challenging giants like Nvidia and potentially becoming the second-largest global asset, after Gold. This prediction is based on the assumption that the proposed legislation will help unlock significant institutional capital, driving the next major phase in crypto adoption.