Coinbase working on prediction markets website, tech researcher says

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.

Bitcoin's price has recently struggled, leading analysts to predict a significant bear market. The cryptocurrency has lost $100,000 over four months and has not regained this level. Continued sell-offs by large investors, or whales, have added pressure, with one analyst estimating an 80% chance of a bear market. This situation reflects a broader trend of declining prices and market uncertainty.

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.

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.

Bitcoin has entered a critical danger zone as it continues to break through support levels, causing concern in the market. The price briefly held between $93,000 and $95,000 but ultimately failed to maintain that range, leading to further declines. Despite the bearish pressure, the Relative Strength Index (RSI) is indicating a bullish divergence, suggesting a potential shift in momentum may be on the horizon. The current market sentiment remains fragile as traders navigate these turbulent conditions.

The Coinbase premium gap has dropped to -$90, indicating a decline in institutional demand and increased selling pressure in the Bitcoin market. This shift reflects changing trends as the cryptocurrency landscape continues to evolve, suggesting a potential impact on investor sentiment and market dynamics.