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Crypto Stocks Surge in Pre-market; IBIT Up 1.5%

Coin WorldTuesday, Jan 28, 2025 8:10 am ET

1min read

US Crypto Stocks Sector Up in Pre-market Trading, IBIT Up 1.5%

The US crypto stocks sector is seeing a positive start to the day, with IBIT, a leading cryptocurrency mining company, up by 1.5% in pre-market trading. This uptick comes amidst a broader rally in the crypto market, with Bitcoin and other major cryptocurrencies also posting gains.

Analysts suggest that the upcoming Initial Public Offerings (IPOs) of several prominent crypto firms in 2025 could significantly impact Bitcoin's price dynamics. These IPOs could create a clear incentive to keep Bitcoin prices elevated, potentially leading to a bullish outlook for investors.

According to a report by 10x Research, at least ten large crypto firms are planning to go public in 2025, with a total combined valuation exceeding $73.9 billion. This influx of capital not only signifies investor confidence but also underscores the interconnectedness between cryptocurrency valuations and Bitcoin performance.

The anticipation surrounding these IPOs mirrors historical events, such as the significant push to inflate Bitcoin's value leading up to Coinbase's IPO in April 2021. The report emphasizes that inflated valuations will likely depend on maintaining a sky-high Bitcoin price.

Market conditions and Bitcoin's valuation trajectory suggest that these IPOs could potentially lift valuations by 50% to 100% compared to previous private funding levels. This could result in a combined valuation of up to $150 billion, providing a strong incentive to sustain Bitcoin's rally throughout 2025.

However, there are notable contextual challenges, such as the recent $36 trillion US debt ceiling, which raises questions regarding liquidity in the crypto market. Analysts predict a possible temporary correction in Bitcoin's price, with the potential for it to dip to around $70,000 before the market cycle resumes its upward trajectory.

Raoul Pal, founder and CEO of Global Macro Investor, provided insights into Bitcoin's pricing patterns, suggesting that a "local top" could be reached above $110,000 in January. According to his analysis, the current market indicators suggest that Bitcoin may experience significant price adjustments thereafter, including a potential fall below $70,000 by February.

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