Charles Hoskinson's proposal to buy Bitcoin with Cardano's treasury could be a game-changer for ADA's long-term price. Here's the breakdown.

Cardano Price Gears Up? Hoskinson's Proposal and the ADA Outlook

Cardano's price is in the spotlight as Charles Hoskinson proposes a bold move: using the Cardano Treasury to invest in Bitcoin and stablecoins. Will this fuel a bull run for ADA? Let's dive in.

Hoskinson's Proposal: A Bullish Catalyst?

Charles Hoskinson, the founder of Cardano, has introduced a proposal that could significantly impact ADA's long-term price. The core idea is to allocate a portion of the Cardano Treasury to purchase Bitcoin (BTC) and stablecoins. The yield generated from these assets would then be used to buy back ADA.

Hoskinson believes this could be the first true sovereign cryptocurrency fund. The initiative aims to boost the Cardano ecosystem and its price over the long haul. The plan involves using 5-10% of the $1.2 billion Cardano Treasury to generate annual returns from BTC and stablecoin investments. These returns would then be reinvested into ADA, adding it back into the Cardano Treasury.

Hoskinson estimates that this strategy could potentially grow Cardano's stablecoin treasury to $1 billion within 5-10 years, creating a more stable foundation for DeFi activity. This growth could not only enhance the network's ecosystem but also bolster bullish forecasts for Cardano's long-term price.

Furthermore, Hoskinson suggests that this proposal could bridge the gap between Cardano and other blockchains like Ethereum and Solana, which currently lead in stablecoin-TVL ratio.

Market Reaction and Current ADA Price

The proposal has sparked considerable discussion, but the immediate market reaction has been mixed. Currently, ADA is priced around $0.60, reflecting a 12% decrease compared to the previous week. However, this bearish trend is not unique to Cardano, as other cryptocurrencies like SOL, ETH, and DOGE have also experienced similar declines.

Despite the recent dip, ADA remains a top-ten cryptocurrency with a market capitalization of $24 billion.

Technical Analysis: Awaiting the Next Move

From a technical analysis perspective, Cardano's price action is at an interesting juncture. There's a clear liquidity pool sitting just beneath equal lows, which acted as a magnet for a recent price drop. This highlights that price movements often follow where the money is concentrated.

Zooming out, the broader crypto market context is crucial. As an altcoin, Cardano's performance is heavily influenced by Bitcoin's movements. A potential scenario involves the price sweeping those lows, tapping into a fresh demand zone, and then bouncing back up to the last supply left behind. This is, of course, not guaranteed; the market trades in probabilities, not certainties.

Cardano's Recent Developments

May 2025 brought several positive developments for Cardano. Notably, Cardano saw the registration and transfer of a Bitcoin Ordinals on its mainnet, thanks to BitWMX. Additionally, Cardano was integrated into Brave Wallet, enabling users to manage ADA with ease.

On a less positive note, Charles Hoskinson faced accusations of embezzling over $600 million in ADA. He addressed these accusations with a complete audit to reassure the community.

Final Thoughts

So, will Hoskinson's Bitcoin-buying plan send Cardano's price soaring? Only time will tell! But with all these developments and proposals in the works, it's safe to say things are never boring in the world of Cardano. Buckle up, crypto enthusiasts, it's going to be an interesting ride!