Hoskinson Says Trump’s Aggressive Crypto Embrace Has Distorted Expected Market Cycle

Hoskinson said Trump’s abrupt pro-crypto embrace created excess optimism and disrupted expected 2025 market behavior.

He argued that strong federal involvement pressured the ecosystem and accelerated sentiment beyond typical cycle patterns.

Hoskinson noted that new policy efforts boosted visibility but added complications developers had not anticipated.

Cardano co-founder Charles Hoskinson said the Trump administration’s approach to crypto created unusual market behavior that disrupted expectations for 2025. He stated that many industry participants assumed the administration’s pro-crypto shift would bring steady benefits after years of political pushback

However, he argued that the government’s abrupt embrace of digital assets produced rapid optimism that fueled what he described as irrational exuberance. His comments followed several months of policy changes in Washington, where officials adopted a stronger focus on digital asset regulation and blockchain research

From Optimism to Heavy Pressure

Hoskinson explained that many market participants expected a smoother period for crypto once Trump returned to office. He said the administration moved from criticism to promotion as it elevated digital assets within its economic agenda

According to him, the industry interpreted the move as a decisive change that aligned the United States with global competition. However, he noted that the fast change also brought heavier government involvement. He compared the situation to receiving too much support at once, which created pressure on the ecosystem.

This change then led into his description of broader market behavior in early 2025. He said the administration’s strong engagement interfered with crypto’s standard rhythm and added new uncertainty.

Hoskinson Describes Disrupted Cycle Expectations

While describing market reactions, Hoskinson highlighted the four-year cycle tied to Bitcoin’s halving. He said the event usually shapes phases of accumulation, rallies, peaks, and later corrections

However, he argued that government enthusiasm affected those expectations by accelerating sentiment beyond typical patterns. This set off what he called an imbalance that the ecosystem continues addressing.

His comments then returned to the broader reaction within the community. He said excitement around federal support shifted too quickly into volatility as traders reassessed conditions.

Trump Administration’s Policy Change

Hoskinson noted that the Trump administration promoted blockchain innovation and explored new regulatory structures in 2025. He said the government’s switch from skepticism to endorsement influenced global perceptions of U.S. involvement

However, he added that some actions proved unhelpful to developers and platforms as the year progressed. These moves, he said, introduced complications that markets had not prepared for when expectations formed at the start of the year.

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