The Crypto Rollercoaster: How Politics and Power Plays Shaped the Market
The Crypto Winter Continues
Charles Hoskinson, the visionary behind Cardano, has weathered a stormy four-year period in the crypto world. His investments have plummeted by a staggering $2.5 billion. But he’s quick to deflect blame from the technology itself, pointing instead to government intervention as the culprit behind the market’s turmoil.
Trump’s Impact: From Hope to Chaos
The crypto community initially cheered when Trump took office, expecting a bullish market. Instead, they were met with chaos. Most cryptocurrencies nosedived, losing 40-50% of their value. Hoskinson humorously compared the market to post-war Japan in 1946—a landscape in ruins.
Trump’s Meme Coin: A Strategic Blunder?
When Trump launched his own meme coin, Hoskinson called it a strategic mistake. The move turned crypto into a political battleground, making meaningful legislation nearly impossible. Had it been executed with proper regulations, it could have been a goldmine. Instead, it handed the Democrats a campaign gift.
Retail Investors Bear the Brunt
Retail investors have been hit hardest, with many down 70-80% on their investments. Hoskinson even joked about his wife threatening divorce if he kept buying crypto, as his predictions kept missing the mark.
2025: A Mixed Recovery
The market saw a partial recovery in 2025, but it was far from even. Institutions pumped money into Bitcoin via ETFs and structured products, driving up its value. Meanwhile, the altcoin space remained stagnant, left behind in the dust.
The $2.5 Billion Lesson
Hoskinson’s $2.5 billion loss serves as a stark reminder that crypto is far from a sure bet. He pushes back against the notion that wealthy founders can simply brush off such losses. The Genius Act that passed was a letdown, favoring banks and stablecoin issuers while doing little for DeFi or layer-one protocols.
The Irony of Institutional Control
It’s a bitter irony, Hoskinson notes, that people originally bought Bitcoin to escape Wall Street’s control, only to see institutions now hold all the Bitcoin on behalf of others.
2024: A Make-or-Break Year
This year is make or break for crypto. Will Wall Street take over completely, or will the retail revolution happen with the fourth generation, bringing the market back to its decentralized roots? Only time will tell.
