Rising bearish bets on Polymarket as Bitcoin market cap drops
The past few weeks have been a challenging period for the cryptocurrency market. Bitcoin's price has dropped below $65,000, which has also affected the overall capitalization of the first cryptocurrency. According to CoinGecko, it has decreased to $1.31 trillion, and BTC now ranks only 15th in the global asset rating by this indicator.
Against this backdrop, bets on Polymarket's forecasting platform that BTC will drop below the $55,000 mark by the end of the year have surged sharply. According to the service, the probability of this event is now estimated at 72%. This market perception by Polymarket participants suggests that more and more investors expect a further decline in the price of the first cryptocurrency.
Reasons for the Bitcoin correction
The main factors that have worked against Bitcoin in recent weeks are the following:
- Investor concerns about the Federal Reserve's tightening of monetary policy in the US.
- Concerns about new strains of coronavirus and possible new restrictions.
- The technical factor - the drop below the psychologically important $65,000 level triggered a wave of speculative sales.
At the same time, many experts are not inclined to dramatize the situation and view the current correction as a healthy market consolidation before a new growth. In their opinion, the long-term prospects for Bitcoin still look positive due to institutional interest, the development of the DeFi and NFT ecosystems, and the expected launch of a Bitcoin ETF in the US.