Charles Hoskinson Accuses Major Firms of Fueling Bitcoin Crash and Market Meltdown
Cardano's founder says big players, not small investors, triggered the latest crypto collapse.
The Market Shock That Rocked Bitcoin and ADA
When Bitcoin slid from its all-time high of $126,000 to $80,600, and Cardano's ADA tumbled from $0.6092 to $0.3911, retail traders were left asking one question: what happened?
According to Charles Hoskinson, the answer isn't hidden in blockchain data or investor sentiment—it's sitting inside the boardrooms of major financial firms. The Cardano founder argues that the downturn wasn't organic but the product of deliberate "pump-and-dump" operations orchestrated by powerful institutions chasing short-term gains.
Big Money, Bigger Manipulation: Hoskinson's Accusation
Hoskinson points the finger squarely at firms like Citadel, accusing them of artificially inflating crypto prices before unloading their holdings at the peak. Once the sell-offs began, he claims, prices collapsed—leaving everyday investors in the dust while big players cashed in tens of billions of dollars.
This alleged market engineering, according to Hoskinson, created a cascading effect. Liquidity vanished, market makers struggled, and the crypto ecosystem was left gasping for stability. "The dominance of a few greedy companies," he said, "has left the market vulnerable."
Leverage and Speculation: Old Habits, New Risks
Hoskinson's comments cut to a familiar wound in finance: leverage and speculation. As in the 2021 bull run, when exuberance over NFTs and quick profits blurred judgment, traders once again piled into risky positions. When institutional whales pulled the rug, overleveraged positions amplified the crash.
The lesson, Hoskinson insists, remains the same—irrational optimism never ends well. Back in 2021, investors saw overnight millionaires minting wealth from digital collectibles. But when FTX collapsed and Terra's LUNA imploded, that optimism turned into a sobering reminder of volatility's bite.
Market Trust at a Crossroads: Regulation Could Be the Remedy
While Hoskinson is critical of corporate behavior, he's equally clear about the path forward: regulatory clarity. The Cardano CEO believes the crypto industry can regain stability and investor trust once the U.S. government passes legislation that distinctly separates the powers of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Such a framework, he argues, would eliminate regulatory overlap, streamline compliance, and give legitimate blockchain projects room to grow without fear of arbitrary crackdowns. In Hoskinson's view, certainty breeds confidence, and confidence fuels sustainable growth.
A Glimpse of Optimism: Bitcoin's Path to $250,000
Despite his criticism, Hoskinson isn't all doom and gloom. He maintains that Bitcoin will recover—predicting a rally to $250,000 by the end of 2026. His rationale: institutional adoption will eventually pivot from speculation to accumulation once proper oversight is in place.
He sees the coming years as a phase of "controlled maturity" for crypto—where reckless gambling gives way to thoughtful participation. And while short-term pain may persist, Hoskinson views it as necessary correction, much like pruning a tree to encourage stronger growth.
Cardano's Own Turbulence: A Blockchain Divided
In a surprising twist, the Cardano network itself recently split into two separate chains, marking the first such incident in eight years. Hoskinson attributes the event to a deliberate attack by a disgruntled former developer, suggesting personal motives rather than systemic failure.
Though disruptive, the incident underscores the challenges of open-source governance. Even strong ecosystems like Cardano can face internal friction when ideology collides with personal grievances. Yet Hoskinson remains confident that the protocol will emerge stronger, noting that community resilience remains one of Cardano's greatest strengths.
Lessons from the Crash: Retail Investors Must Adapt
Hoskinson's message to small investors is pragmatic: learn from history. The 2021 bull market showed how greed can blind participants to risk, and 2025's correction reinforces that markets are cyclical, not linear. Retail investors who diversify, stay patient, and focus on fundamentals will fare better than those chasing hype.
He warns against following market euphoria, emphasizing that long-term conviction beats short-term speculation. "When everyone's rushing to buy," he said, "that's when you slow down. And when everyone's panicking, that's when you start watching for value."
A Market Poised Between Greed and Growth
The crypto sector's current slump may feel like a step backward, but for Hoskinson, it's more like a reset button. Just as Buffett reminds investors that markets transfer wealth from the impatient to the patient, Hoskinson's outlook reflects a similar truth for crypto.
The speculation storm might have shaken confidence, but once the dust settles, Bitcoin, ADA, and the broader market could emerge stronger—leaner, wiser, and better regulated.
In the long run, markets correct greed. And as history often proves, correction is the seed of stability.
