- Hoskinson says privacy assets may drive early retail demand as he outlines a market moving toward a more normal bull phase.
- He links weak retail activity to 2021 losses and says changing U.S. policy influences expectations ahead of the 2026 Clarity Act.
- He notes rising inflation pressures and says economic strain boosts interest in cryptocurrencies seen as durable assets.
Cardano founder Charles Hoskinson gave an outlook for the crypto market during the Midnight Network Summit 2025, placing privacy-focused assets at the center of what he expects to be a major change in retail activity.
He argued that rising living costs, heavy political attention and fallout from earlier market cycles continue to influence sentiment, yet he believes the industry moves closer to what he described as a “normal bull market.” He said Bitcoin could end 2026 near $250,000 if current trends hold, noting the role that privacy tokens may play in bringing retail demand back.
Retail Sentiment and Policy Expectations
Hoskinson linked today’s weak retail engagement to the sharp losses many investors took in 2021. He compared the situation to the early 2000s, when internet stocks struggled for years after the dot-com crash.
He said many investors stayed cautious through 2025 as they waited for clearer policy signals. That expectation, he added, centered on a belief that the Trump administration would provide strong support for the industry.
However, he said the shift in tone from the federal government created unusual market behavior. He described the United States as a “bag holder” due to its rising crypto exposure, noting that this stance disrupted the usual four-year market rhythm.
He said the ecosystem now adapts to that new environment, with participants watching for the Clarity Act, which he expects in early 2026.
Inflation Pressures and Sound Money
The discussion then moved to inflation pressures. Hoskinson said everyday costs strain households as grocery budgets shrink and mortgage expenses rise. He pointed to global debt levels and said many people now view cryptocurrencies as an alternative store of value.
He also mentioned proposals for longer mortgage terms as an example of how economic pressures influence public behavior. As inflation concerns grow, he said more individuals look for assets they consider durable.
He noted that this trend strengthens interest in privacy assets because they address concerns about financial autonomy. Notably, he expects this segment to attract early retail flows before broader participation returns.
Privacy Assets Seen as Drivers of 2026
Hoskinson said privacy tokens may start the next major wave because they indicate rising demand for protection in financial transactions. He said their momentum could create a broader lift across the market as other assets benefit from renewed confidence.
He concluded that improving institutional access makes entry easier for new participants and supports the path toward what he expects to be a strong 2026 cycle.
