Bitcoin’s Next Peak Might Ignite ADA’s Rally, Says Cardano Creator

Overview

Cardano (ADA) has experienced a notable rally this month, following a rebound from a low range. This increase has been accompanied by significant whale activity in both spot and futures markets. The Cardano governance has recently approved a substantial treasury allocation aimed at enhancing various integrations and tools, which could further bolster the token’s prospects.

Recent Developments

In January, Cardano saw its price rise after bouncing back from a low zone around $0.33 to $0.35. On January 2, ADA prices surged by more than 10%. Year-to-date, the token has increased by 20%. Reports indicate that this surge coincided with a spike in whale activity across both spot and futures markets, suggesting that significant players in the market were actively engaging with ADA during this time.

On January 8, Cardano’s governance approved a treasury allocation of 70 million ADA. This allocation is aimed at supporting integrations with stablecoins USDC and USDT, collaborating with the Pyth Network on oracle work, and developing cross-chain tools. Market participants interpret this allocation as a strategic move to put cash to work in enhancing the network’s functionalities.

Hoskinson’s Insights

Charles Hoskinson, the founder of Cardano, has expressed his belief that a new peak in Bitcoin could trigger a broader rally across the cryptocurrency market, including ADA. He has forecasted a potential rise in Bitcoin’s price to a significant high, which could lead to an increase in its market capitalization. Hoskinson noted that when Bitcoin experiences a rally, investors typically gravitate towards BTC first due to its liquidity and perceived safety, often leading to subsequent capital flows into altcoins.

Historical Context

Historical data demonstrates that Bitcoin’s significant price increases have often preceded gains in alternative cryptocurrencies. For instance, during 2021, Bitcoin’s rise to approximately $68,000 was followed by substantial surges in several major altcoins. However, not all Bitcoin rallies have benefited altcoins equally. In October 2025, Bitcoin reached a record high, yet many altcoins either remained stagnant or saw only modest gains. This inconsistency has led some analysts to caution against assuming a uniform transfer of value from Bitcoin to altcoins in this cycle.

A Cautious Perspective

While Hoskinson maintains a bullish outlook regarding the connection between Bitcoin’s peaks and potential altcoin gains, the evidence from late 2025 suggests that this relationship can be unpredictable. Factors such as liquidity, macroeconomic conditions, ETF flows, and user adoption of new features will significantly influence market dynamics. Cardano’s recent treasury allocations targeting stablecoins and oracle access may enhance DeFi activity on the network, but competition from other layer one solutions remains a concern.

From author

The recent developments surrounding Cardano highlight both potential and caution in the cryptocurrency market. While the increase in ADA’s price and the approval for treasury spending are promising, the broader market context and historical patterns of Bitcoin’s influence on altcoins warrant a measured approach.

Impact on the crypto market

• Cardano’s recent price movements indicate a growing interest and potential for recovery.
• The treasury allocation may lead to increased development and integration within the Cardano ecosystem.
• Historical trends suggest that Bitcoin’s price dynamics can significantly impact altcoin performance, but results can vary.
• The mixed outcomes of past Bitcoin rallies urge caution among investors regarding expectations for altcoin gains.
• Ongoing competition among layer one solutions could affect capital flows and investor interest in Cardano.