Prediction market traders are increasingly wagering that bitcoin’s correction is far from over, even after the cryptocurrency tumbled toward $65,000 this week amid mounting pressure from ETF outflows and weakening institutional demand.
On Kalshi, traders currently assign a 66% probability that bitcoin drops below $55,000 this year and a 50% probability of sub-$50,000 prices. They also give a 31% chance that prices could even dip below $40,000.
Polymarket traders are expressing a similar view. Contracts on the platform imply a roughly 67% chance bitcoin falls below $55,000 this year and a better-than-even chance it drops under $50,000.
On prediction platform Polymarket, traders now give bitcoin only a 30% chance of outperforming gold in 2026. Gold is down approximately 1.5% in the last month but is up 33% in the last year while BTC is down around 37%.
This comes amid dwindling institutional appetite for the leading cryptocurrency. According to data from SoSo Value, traders withdrew $2.4 billion from U.S.-listed BTC ETFs in May and $1 billion in the first two trading days of June, with the record-breaking outflow continuing.
Meanwhile, K33 Research argues that bitcoin is also losing a battle for investor attention against artificial intelligence-related stocks. As CoinDesk previously reported, in a report on Tuesday, the firm said many investors view the opportunity cost of holding bitcoin as too high while AI-linked companies continue to post outsized gains and major equity indexes push to record highs.
“Much of the market views the opportunity cost of holding BTC as too high while anything AI-related soars,” K33’s Vetle Lunde wrote.
While K33 still views bitcoin as undervalued relative to equities over the long term, prediction markets suggest traders are increasingly positioning for lower prices before any recovery arrives.
While traders increasingly bet on lower bitcoin prices, capital does not appear to be leaving crypto entirely. Instead, it is increasingly moving into digital dollars.
USDT and USDC have both gained market share during bitcoin’s slide to $66,000, CoinDesk previously reported, a sign that traders are raising cash and waiting for better opportunities rather than immediately buying the dip.