Cardano Down 75% Against Bitcoin 2 Years After Charles Hoskinson Questioned BTC’s Longevity

Cardano (ADA) prices have not reacted positively in recent years after Charles Hoskinson mentioned something negative about Bitcoin (BTC).

ADA price dropped 75% since Hoskinson criticized BTC

In particular, the ADA/BTC trading pair dropped by 75% after Hoskinson questioned the existence of Bitcoin in an interview with Cointelegraph.

In an October 2022 discussion, Hoskinson argued that BTC should not be used on the Bitcoin blockchain network, but as an asset wrapped around faster blockchains like Cardano or Ethereum.

At that time, ADA/BTC was trading as high as 2,188 satoshis (1 satoshi equals 0.00000001 BTC). But as of September 3, the pair has fallen to its lowest level since December 2020 at 562 satoshis.

ADA/BTC is part of a continuing pattern of negative reactions to Hoskinson's criticism of Bitcoin. In most cases, his comments were followed by a short-term or medium-term decline in ADA/BTC.

This was followed by Hoskinson's June 2021 criticism of Bitcoin as a “washed-up football star”, his April 2024 comparison of Bitcoin to religion, and his May 2024 statement that “the industry doesn't need Bitcoin”. Or his June 2024 cardano will surpass bitcoin.

ADA/BTC has fallen 94% from its all-time high in January 2018.

Is ADA finally collapsing with BTC?

ADA's interim technical setup seems to be biased towards bulls with BTC.

Specifically, the ADA/BTC pair is trading in what appears to be a falling wedge setup, which traditional analysts see as a dominant reversal pattern. As a rule, a falling wedge setup is resolved when the price breaks sharply above the upper trend line and increases as much as the upper height of the wedge.

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Applying the same principle to the ADA/BTC chart, if the breakout point is where the pattern lines intersect, brings the downside target to around 694 satoshis. In other words, the pair could rally by 25% by the end of 2024.

However, on the longer-term chart, a rally does not necessarily mean ADA/BTC is down.

Notably, the pair broke below its lifetime rising trendline support in May 2024—after Hoskinson's “the industry doesn't need bitcoin” comment—and has been steadily declining ever since.

Further drops ADA could test the 1.0 Fibonacci retracement level around 413 satoshis as the next lower target in 2025, which is 25% down from the current price.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.