Kraken IPO and M&A Deals to Fuel Crypto’s Mid-Stage Cycle in 2026

Get ready for the next big wave. The crypto market isn't just bouncing back—it's gearing up for a structural shift, and the traditional finance playbook is being ripped up and rewritten.

The Mainstreaming Machine Kicks Into Gear

Forget the wild west narrative. The coming cycle will be defined by institutional machinery. Think major exchange IPOs, not just token listings. Picture strategic acquisitions that consolidate power and create financial behemoths with crypto at their core. This isn't about retail FOMO; it's about corporate balance sheets and Wall Street's relentless hunt for the next growth engine—even if they still don't quite get the tech.

Liquidity, Legitimacy, and a New Playing Field

An IPO does more than raise capital. It injects unprecedented liquidity and, crucially, a sheen of regulatory legitimacy that has long been the industry's holy grail. It forces traditional analysts to build models, compels funds to take positions, and opens the floodgates for capital that's been waiting on the sidelines for a 'safe' entry point. Meanwhile, mergers and acquisitions will streamline the ecosystem, cutting out the weak and creating vertically integrated giants that control everything from your wallet to the trading floor.

The 2026 Inflection Point

Mark the timeline. By 2026, the pieces set in motion today will converge. The market will have digested the initial euphoria of the prior bull run and entered what analysts coldly term the 'mid-stage'—where fundamentals (or at least, crypto's version of them) start to matter more than memes. It's the phase where real companies with real revenue, bolstered by public market cash and strategic deals, separate themselves from the pack.

The old guard in finance will scoff, of course, calling it a bubble dressed in a suit—a cynical but time-honored tradition right before they quietly buy in. The infrastructure being built now will power the next decade of digital finance. The question isn't if it happens, but who controls the pipes when the music really starts playing.

TLDR

• Kraken’s potential IPO and M&As are seen as catalysts for the crypto market’s mid-stage cycle.
• Bitcoin’s recent price drop hasn’t deterred some investors, with the market predicted to rebound in 2026.
• Dan Tapiero of 50T Funds believes the crypto market remains in its “mid-stage” despite volatility.
• Fidelity’s Jurrien Timmer expects a downturn for Bitcoin in 2026, forecasting a local bottom around $65,000.

Kraken, one of the leading cryptocurrency exchanges, is preparing for an initial public offering (IPO) in 2026. This move is expected to attract traditional financial (TradFi) investors, which could inject new capital into the cryptocurrency market. The IPO follows Kraken’s successful funding round, where it raised $800 million, bringing its valuation to $20 billion.

REPORT: Kraken's pending IPO and a wave of crypto M&A deals may attract traditional finance capital, signaling industry maturation pic.twitter.com/3efVLzM4nf

— Max Avery (@realMaxAvery) December 24, 2025

Dan Tapiero, the founder and CEO of 50T Funds, believes Kraken’s IPO could act as a catalyst for the broader market. Tapiero suggested that the ongoing Bitcoin bull market is still in its “mid-stage” and that the potential IPO, combined with increased mergers and acquisitions (M&A) activity in the crypto space, could boost investor confidence. This influx of capital from traditional finance players could further stabilize the market and attract new investors.

M&A Deals Strengthen Market Outlook

In addition to Kraken’s IPO, the cryptocurrency industry is also seeing increased merger and acquisition (M&A) activity. As the industry matures, larger players in the market are increasingly acquiring smaller companies to consolidate their positions and expand their reach. This trend is expected to continue, providing further stability and growth opportunities for the sector.

Tapiero suggests that M&A deals could play a critical role in propelling the industry forward. These deals may create more synergies between different crypto companies and enhance the overall market infrastructure. As a result, the market may experience a period of consolidation that strengthens the industry’s foundations and sets the stage for sustained growth in the future.

Diverging Opinions on Bitcoin’s 2026 Outlook

While many in the crypto industry remain optimistic about the future, there are differing views on Bitcoin’s performance in 2026. Jurrien Timmer, Director of Global Macroeconomic Research at Fidelity, predicts a potential downside for bitcoin next year. Timmer believes that 2026 may be a year of correction, with Bitcoin’s price possibly falling to a local bottom of around $65,000.

Timmer’s outlook contrasts with that of Tapiero, who remains confident in Bitcoin’s long-term trajectory. Tapiero sees the current market as still in its “mid-stage” bull cycle. According to Tapiero, the pullback in Bitcoin’s price after its October 2025 all-time high of over $126,000 does not signal the end of the bull market. Instead, he views it as a natural market correction, which could lead to new highs as more capital enters the market.

Market Forces Drive Long-Term Trend

While some analysts anticipate a pullback, others believe that global economic forces, including liquidity levels and sovereign adoption, will continue to drive the cryptocurrency market. Jimmy Xue, co-founder and COO of Axis, an on-chain quantitative yield platform, pointed out that Bitcoin’s price cycles have shifted away from the traditional four-year halving schedule. He believes the market is now influenced more by macroeconomic factors, which could result in a longer-term “super-cycle.”

Xue’s view emphasizes that, despite short-term volatility, the broader trend for Bitcoin and the cryptocurrency market could remain positive if global liquidity continues to loosen. In this scenario, Bitcoin’s price support at $65,000 to $75,000 could act as a foundation for further growth in the coming years.