Bitcoin prices have recently dipped below $65k reigniting speculation about a further market correction. Polymarket, a prediction market platform, shows that the odds of Bitcoin falling under $55k have climbed to 72%, signaling growing bearish sentiment among traders. Other predictions include declines below $50k and $45k, with probabilities of 67% and 47%, respectively.
Bitcoin Market Capitalization and Year to Date Performance
The cryptok market capitalization has fallen to approximately $1.31 trillion, placing it 15th globally and just behind the Vanguard S&P 500 ETF (VOO). Year to date, Bitcoin’s market cap has declined by nearly 25%, shedding about $440 billion since peaking around $90,000. The total crypto market has experienced a similar contraction, losing roughly $760 billion, or 24.5% of its value.
Analyst Predictions and Market Liquidity
Several analysts view $55,000 as a potential bottom, with Standard Chartered projecting a temporary dip toward $50,000 before a possible recovery. CryptoQuant highlights extreme liquidity stress in Tether (USDT) as reminiscent of past market bottoms, noting that net inflows to exchanges have dropped sharply from $616 million to just $27 million. Reduced liquidity suggests limited buying power in the current market.
Despite short term bearish trends, Bitcoin’s long term value remains recognized. Surveys indicate that institutional investors still consider BTC undervalued in the $85,000–$95,000 range, reflecting its ongoing potential relative to equities and precious metals.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.