A potential initial public offering by crypto exchange Kraken and a rise in merger and acquisition activity could help reignite what fund managers describe as crypto’s mid-stage market cycle
Market participants said a wave of crypto firms seeking public listings may draw renewed interest and capital from traditional finance investors.
Bitcoin reached an all-time high above $126,000 on 6 October before suffering a sharp reversal following a $19 billion liquidation event days later.
Dan Tapiero, founder and chief executive of 50T Funds, said the current Bitcoin bull market remains far from exhausted despite recent volatility.
The Bitcoin bull market is still mid-stage.
Dan Tapiero said, adding that a Kraken IPO and increased M&A activity could provide fresh tailwinds from TradFi.
Kraken previously raised $800 million in funding, valuing the exchange at $20 billion, and has reportedly filed confidentially for a United States IPO.
Supporters of the mid-cycle thesis argue that public listings can improve transparency and investor confidence across the digital asset sector.
Not all analysts share the same outlook, with some warning that Bitcoin could face a prolonged correction later in the decade.