Coinbase slumps as Wall Street woes worsen: Will there be a prolonged downturn?

CryptoQuant CEO Ki Young Ju has identified a realized price level of $56,000 for Bitcoin amid its current correction. He clarified that this figure should not be interpreted as a definitive bottom, emphasizing that market conditions and sentiment could lead to price fluctuations. Ju's analysis categorizes the market into futures, spot, and on-chain segments, noting a shift from futures whales to retail dominance in trading activity.

BlackRock has made substantial deposits of $616 million in Bitcoin and $200 million in Ethereum into Coinbase, signaling a growing institutional confidence in digital assets. This move may contribute to the stabilization of cryptocurrency markets amid ongoing volatility.

Leaked screenshots indicate that Coinbase is developing a prediction markets platform utilizing Kalshi's regulated infrastructure. The images, shared by tech researcher Jane Manchun Wong, suggest that Coinbase is creating a dedicated website for this new service, which could enhance its offerings in the cryptocurrency sector.

Kraken, a US-based cryptocurrency exchange, has secured a $200 million investment from Citadel Securities, leading to a valuation of $20 billion. This investment is part of Kraken's growth strategy, with Citadel expressing commitment to collaborate on risk management and market structure analysis. This funding follows a previous round in September where Kraken raised $600 million at a $15 billion valuation.

Tech researcher Jane Manchun Wong has revealed that Coinbase is developing a prediction markets website. This new platform aims to leverage the growing interest in prediction markets within the cryptocurrency sector.

Michael Saylor, the chairman of Strategy, has dismissed claims that Wall Street has negatively impacted Bitcoin during its recent price crash. He stated that Bitcoin has become significantly less volatile, despite the current downturn, which contradicts the views of many crypto analysts who attribute the price drop to various market factors. Saylor's comments highlight a divergence in perspectives regarding Bitcoin's stability and future potential.

On Tuesday, Bitcoin (BTC) fell below $90,000, reaching its lowest price in seven months, resulting in over $1 billion in liquidations across the crypto market within 24 hours. Analysts from the Bull Theory noted that this decline was due to structured institutional selling rather than typical market pressure. Despite Bitcoin's downturn, altcoins have remained stable, indicating a divergence in market behavior during this period of volatility.

Tom Lee, co-founder of Fundstrat, predicts that Ethereum is nearing a cyclical low, suggesting that it may bottom this week. He attributes the current price drawdown to a broader correction in the cryptocurrency market that began after a liquidation event on October 10. Despite the downturn, Lee maintains that Ethereum's fundamental investment narrative remains strong, particularly as it serves as a neutral infrastructure for tokenization and stablecoins, which are gaining traction among institutional investors.