Cardano’s founder, Charles Hoskinson, is predicting a significant surge of capital heading into the cryptocurrency market. He believes this influx will be sparked by anticipated interest rate cuts from the Federal Reserve and positive shifts in crypto regulations.

In a recent speech, Hoskinson expanded on this, suggesting that the ongoing global trade tensions – particularly between the US and China – are likely to ease soon, paving the way for a more inviting investment landscape. “What will happen is the tariff issue will fizzle out,” he explained. He added that “people will realise that the world is willing to negotiate… and markets will stabilise.”

Hoskinson sees the real turning point arriving when the Fed starts lowering interest rates. He anticipates this will unleash a wave of “fast, cheap money” into the financial system, with a good portion of that liquidity flowing directly into cryptocurrencies, especially as the regulatory environment in the U.S. becomes more supportive.

“There’s going to be a lot of money flowing into crypto with the market structure bill, the stablecoin bill and the Magnificent Seven coming into play,” Hoskinson stated. He was referencing the potential for increased institutional involvement and regulatory clarity to act as catalysts for investment. “It’s probably going to settle down for the next three to five months and then there’s going to be a big wave of speculative interest coming into the markets, probably in August or September.”

*This is not investment advice.