Analysis: US$132 billion IPO may have an impact on Bitcoin, so beware of the market's possible transition period

PANews reported on June 13 that Matrixport pointed out in its latest MatrixOnTarget report that the current crypto market is ushering in an IPO plan totaling US$132 billion, which may have an important impact on the price of Bitcoin. According to the report, Bitcoin has recently exceeded $106,000, partly due to the market capital injection brought about by the IPO boom of crypto companies such as Circle. Circle's market value has reached $23.5 billion, far exceeding the initial expected $7.9 billion. In addition, crypto exchanges such as Bullish, Gemini and Kraken are also planning to go public in the next few months, with valuations of US$13.5 billion, 10.5 billion and 16.2 billion respectively.

The report analyzed that these IPOs may further attract investors in traditional financial markets to enter the crypto field, thereby providing indirect support for Bitcoin prices. However, the market still needs to pay attention to whether the IPO boom will bring short-term volatility or long-term support. The report also mentioned that Circle's current P/E ratio is as high as 340 times, significantly higher than Coinbase's 42 times and other similar companies, and may be at risk of overvalued.

Matrixport believes that as more crypto companies go public, the market's attention and demand for Bitcoin is expected to increase further, but we need to be wary of the market's possible entry into a sideways consolidation period.

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