Coinbase’s ADA reserves rise 462% as Bitcoin cools and altcoins heat up

The cryptocurrency market is currently cooling down after a strong rally that pushed Bitcoin to an all-time high of $125,559 on October 5, 2025. With Bitcoin entering the overbought zone on the daily chart, experts are focusing on a rotation of liquidity into altcoins, a cycle often seen in past bull markets.

Historically, Bitcoin leads market uptrends, followed by funds flowing into altcoins when Bitcoin overheats. Indicators such as the daily RSI show that unlike Bitcoin, most altcoins still have room to play. In this pattern, everyone is looking at coins other than the top two as the next move.

Coinbase increases ADA reserve by 462%

Among the top altcoins, Cardano (ADA) is gaining attention after Coinbase doubled down on its Base-wrapped ADA product (cbADA). According to Coinbase’s Proof-of-Reserves data, the company’s ADA holdings jumped from 1.7 million ADA to 9.56 million ADA in one month, an increase of 462%.

This rapid increase indicates the increasing institutional accumulation and utility of ADA throughout the chain. At the same time, Coinbase’s XRP reserves decreased from 970 million to 99 million, indicating a change in institutional investor preferences.

ADA price and market position

Cardano price has increased 4x since the June 2023 bear market low. Although it falls short of the returns of small-cap tokens, ADA remains one of the best-performing blue-chip assets.

Related: 3 altcoins that will benefit from Bitcoin’s recent rebound

According to exchange data, $2.5 billion worth of ADA has been removed from trading platforms in the past year alone, representing more than 10% of the circulating supply. Analysts say this long-term trend shows holder confidence and points to the possibility of future supply shocks.

Outlook: Fundamentals align with market timing

Cardano tends to perform best during phases of strong retail inflows. Searches for cryptocurrencies in retail stores are on the rise as Bitcoin’s all-time high returns to mainstream attention. ADA is still trading below a key resistance trend line that has been held since December 2024. For further upside, ADA needs to break out of the $0.96-$0.97 zone.

If that is achieved, the next target would be around $1.18, with a potential further rally towards $1.79. For now, the uptrend will remain as long as the token holds its recent support levels.

Related: Big Cardano rumor: Analyst says ADA chart has “never been this good”

Analyst Michael Van de Poppe also expects a short-term pullback in Bitcoin to reset leverage, followed by a period of consolidation. Ethereum is likely to outperform Bitcoin during this time, and altcoins like ADA could experience strong rallies as capital circulates into the broader crypto market.