Cardano, Bitcoin on a Collision Course: What This Means, Imapct On ADA Price

Cryptocurrency analyst Dan Gambardello discusses Cardano’s potential integration with Bitcoin through treasury proposals and ETF developments.

The analyst examines how Bitcoin DeFi opportunities could attract institutional liquidity while maintaining long-term bullish perspective on ADA price action.

Cardano ETF Approval Odds Climb Amid Institutional Momentum

Dan Gambardello indicates Cardano’s ETF approval probabilities increase from 41% on Jun 8th to 70% today, with recent highs of 78% approval probability. Bloomberg provides 90% approval probabilities for ADA ETF approval in 2025, along with other leading cryptocurrencies such as Dogecoin, Polkadot, and Avalanche.

A number of altcoins have spot ETF filings in the works with positive approval probabilities this year. Litecoin, Solana, and XRP have 95% approval probabilities, and Doge, ADA, DOT, and AVAX have 90% approval probabilities for 2025. SUI and TRX even appear in the pipeline for potential ETF products.

Most of the approvals of ETFs would start to emerge between Q3 and Q4 of 2025, introducing institutional flows, new investor access, and regulatory legitimacy to approved cryptos. Gambardello continues that this is along the same trend that started Bitcoin’s rally after BTC ETF approval.

The analyst stated: “These moves are actually very important on the macro in terms of the bigger picture, the thesis.” Recent developments include the Senate passing stablecoin legislation, the sitting president endorsing digital assets as the future, and JPMorgan plus DTCC meeting with crypto task forces on tokenization.

Treasury Proposal Targets Bitcoin DeFi Integration Strategy

Gambardello presents a Cardano treasury proposal to exchange around $100 million of ADA into Bitcoin and stablecoins for yield generation. The plan is to invest money in between Cardano-native stablecoins and Bitcoin equally, and generated yields to be used in buying more ADA and donating it to the treasury.

Andrew of Bitcoin OS, content lead, supports utilizing treasury funds to steer smart initiatives to bring Bitcoin and stablecoin liquidity to the Cardano chain. The suggestion is to attract Bitcoin holders for DeFi yield opportunities in safer environments.

The strategy is to apply ADA treasury funds to buy Bitcoin in good faith to the Bitcoin community while demonstrating how Bitcoiners can gain yields on Cardano infrastructure. $50 million initial Bitcoin deployment can have the potential to bring in additional investors, which can expand from $50 million to $500 million, and subsequently to $5 billion value locked.

Cardano’s security advantages make it stand out from other DeFi protocols that are offering Bitcoin returns, and it is drawing security-conscious Bitcoin holders. The proposal can grab headlines showing Cardano’s commitment to treat Bitcoin as an asset and create long-term yield mechanisms.

The project places Cardano in a position to rival Solana TVL figures as it creates bridges between Bitcoin and Cardano universes. The integration comes as other Cardano projects such as the midnight protocol and other ecosystem stories gain momentum.

Analyst Maintains Bullish Outlook Despite Altcoin Consolidation Patterns

Gambardello maintains his bull position for Cardano in the face of ongoing market consolidation, further asserting that all altcoins are experiencing the same bear pressure rather than ADA weakness. The analyst refers to a January prediction that witnessed total crypto market cap excluding Bitcoin and Ethereum experiencing prolonged drawdown periods.

The fractal pattern anticipated for January has played out as anticipated, from the April capitulation event as witnessed following common cryptocurrency market trends. Gambardello compares the situation to the previous consolidation phases in August 2024, June 2023, and January 2023.

ADA price still maintains its higher low trend from the bear market, forming an apparently inverse head and shoulders structure characteristic of earlier cycle recoveries. The analyst notices this technical formation as he expects additional consolidation phases.

Important technical indicator shows that the 20-week moving average is nearing the 50-week moving average on the ADA weekly chart. Historical evidence shows that this cross was 56 days before previous bottoms, with another showing 84 days of sideways activity after the cross.

Today’s market environment is different from historical bear markets following Federal Reserve balance sheet expansion rather than quantitative tightening.

Gambardello contrasts January 2022 conditions when the Fed began reducing the balance sheet to today’s expansionary monetary policy in risk assets like cryptocurrencies.

The post Cardano, Bitcoin on a Collision Course: What This Means, Imapct On ADA Price appeared first on The Coin Republic.