Is Kraken’s IPO Set to Spark a Bitcoin Rally Amid Market Struggles?

TLDR

• Kraken’s IPO in 2026 could attract fresh capital from traditional finance into the crypto sector.
• Fidelity experts warn of a possible “off year” for Bitcoin, placing local bottoms near $65,000.
• “Smart money” flows show a predominantly short positioning, anticipating near-term volatility.

 

After reaching an all-time high of $126,000 in October, Bitcoin faces a severe correction marked by massive liquidations. Amidst this context of uncertainty, a light at the end of the tunnel emerges as institutional hope: the Kraken IPO impact.

Bull market in bitcoin/blockchain/digital assets still mid-stage.

Price unchanged vs gold since 2021 inconsistent with huge number of positive fundamental developments in the digital asset ecosystem since that time.

Yes, short term interest rates were lower in '21 but the space…

— Dan Tapiero (@DTAPCAP) December 23, 2025

The platform, recently valued at $20 billion following an $800 million funding round, filed confidential paperwork for its U.S. stock market debut—a move many consider a vital bridge toward traditional finance (TradFi).

Dan Tapiero, CEO of 50T Funds, assured that the bull cycle is not over. For him, events such as the public listing of the American exchange can unlock institutional funds that have remained on the sidelines. T

his injection of liquidity and institutional legitimacy could be the necessary catalyst to reactivate demand in a market still digesting year-end losses.

Contradicting Visions: Is 2026 a Gap Year for Bitcoin?

However, caution dominates among other industry heavyweights. Jurrien Timmer of Fidelity Investments offers a less enthusiastic perspective, suggesting that the Kraken IPO impact could be mitigated by natural market cycles.

Timmer projects that 2026 could be an “off year” for Bitcoin, with the price seeking support between $65,000 and $75,000, following the historical pattern of twelve-month bearish phases.

Furthermore, data from Nansen reinforces this cautious view by showing that “smart money” is positioned short on most major assets. While the anticipation for the IPO generates long-term optimism, immediate sentiment is dominated by volatility.

Bitcoin’s success in extending its bull cycle will ultimately depend on whether the confidence generated by the Kraken IPO impact is sufficient to counter the macroeconomic pressures and liquidity rotation expected for the coming year.