Cardano Price Forecast: Hoskinson’s Bitcoin Fund May Initiate Long-Expected ADA Surge

Cardano appears to be on the verge of a significant DeFi evolution, as founder Charles Hoskinson has suggested a $100 million sovereign wealth fund aimed at enhancing the network’s ecosystem, a concept that could bolster optimistic long-term price predictions for Cardano.

The initiative would allocate 5% to 10% of the protocol’s treasury into assets such as Bitcoin and “yield-bearing instruments” like USDM—Cardano’s native stablecoin.

The stablecoin approach revolves around a self-reinforcing feedback mechanism: generate passive income by supplying liquidity through staking, then utilize that income to repurchase ADA and replenish the treasury.

A Sovereign Wealth Fund Could Compete with Ethereum and Solana

Hoskinson anticipates that this strategy—if annualized—could expand the Cardano stablecoin treasury to $1 billion within 5-10 years, establishing a more stable foundation to promote DeFi engagement.

Cardano Founder Proposes Deploying $100M of $ADA Treasury to Boost #Cardano DeFi and Reinvest in $ADA. pic.twitter.com/JSNAIIYfkv

— Altcoin Daily (@AltcoinDaily) June 12, 2025

He pointed out that Ethereum and Solana currently lead in stablecoin-to-TVL ratios, which allows them to excel in DeFi. With this strategy, Cardano could narrow the disparity.

The inclusion of Bitcoin would act as a safeguard against the inflationary threats posed by fiat-pegged stablecoins, adding a protective element to the fund’s structure.

Nonetheless, community governance poses a challenge to its execution, and not all members are in favor.

While Hoskinson asserts that the conversion is unlikely to adversely affect the ADA price, some community members express concerns about significant sell pressure in an already delicate market.

“If you hope to sell 140m at $0.7 next month, the market will ensure you sell it for $0.5,” remarked commentator Cardano Whale on X.

Cardano Price Analysis: Could the Fund Trigger a Breakout?

Although the Cardano community governance process may postpone implementation, a buy-the-rumor reaction from the market could ignite the breakout of the substantial 7-month falling wedge pattern.

Following several unsuccessful breakout attempts, the latest rejection has positioned the Cardano price to retest its lower boundary.

ADA / USDT 3-day chart, falling wedge pattern. Source: TradingView, Binance.

It currently maintains the 0.236 Fibonacci retracement level as temporary support at $0.60—a level that typically aligns with local bottoms in a minor retracement.

$0.60 has also served as a notable demand zone since late 2024, but momentum indicators now raise questions about its robustness.

The RSI sharply reversed after being turned away at the neutral 50 mark, indicating diminishing bullish momentum, particularly after bears failed to take advantage of recent seller fatigue.

Additionally, the MACD shows early signs of persistent downside, having widened its gap below the signal line following a death cross at the beginning of June.

If ADA falls below the $0.60 level, it could postpone a breakout, eliminating the current $1 technical target based on the 1.618 Fib extension—an 80% increase from present prices.

This bearish scenario could result in the Cardano price declining 14% to the $0.50 support that marked the mid-April market bottom.

Looking ahead, the July 15 Cardano ETF decision could serve as the next substantial fundamental catalyst ADA requires to regain momentum, boosting demand in traditional investment markets.

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