Bitcoin's price has dropped below $65,000, with traders on the prediction market Polymarket increasing bets on further declines. Odds of Bitcoin falling below $55,000 surged to 72% on Polymarket, reporting $1.2 billion in volume.
Bitcoin briefly dipped below $65,000, recovering to approximately $65,900. Its market capitalization also fell to roughly $1.31 trillion, now ranking below the Vanguard S&P 500 ETF and slipping to 15th globally amidst the ongoing crypto market downturn.
Year-to-date, Bitcoin's market capitalization has decreased by approximately $440 billion, a 25% decline from its peak around $90,000. The total cryptocurrency market cap has seen a similar contraction, shedding about $760 billion.
Despite current volatility, Bitcoin has gained roughly 22% over the past five years, prompting renewed debate about its efficacy as an inflation hedge.
Analysts and financial institutions echo the sentiment for a potential drop, with some projecting Bitcoin could fall to $50,000 before recovering. Reports indicate extreme liquidity stress in Tether USDt, a signal reminiscent of past market bottoms.
Furthermore, stablecoin exchange flows suggest declining marginal buying power. However, some experts maintain a long-term bullish outlook, describing Bitcoin as the "most undervalued asset in the world."
