Bitcoin slid below $65,000 over the weekend before stabilizing on Monday as traders on prediction market Polymarket increased bets that the cryptocurrency’s pullback has further to run.
The odds of Bitcoin (BTC) falling below $55,000 climbed to 72% on Polymarket, with $1.2 million in volume on the platform.
Other bearish bets include price declines below $50,000 and $45,000, with odds of 61% and 47%, and trading volumes of $170,000 and $1.4 million, respectively.
Odds that Bitcoin would drop below $55,000 surged 14% at the time of writing. Source: PolymarketBitcoin briefly fell below $65,000 on Sunday before recovering to around $65,900 at the time of writing, according to TradingView data.
Bitcoin’s market cap also slid to roughly $1.31 trillion, dropping behind the Vanguard S&P 500 ETF (VOO) and falling to 15th globally amid the ongoing crypto market rout, according to 8marketcap.
Bitcoin’s market cap is down 25% year-to-date
Bitcoin’s market capitalization has fallen by about $440 billion this year, roughly a quarter of its value, with prices sliding from around $90,000.
The total crypto market cap has seen a similar drop, shedding about $760 billion, or 24.5%, according to CoinGecko data.
Bitcoin now sits between the Vanguard S&P 500 ETF (VOO) and Berkshire Hathaway (BRK-B) in market cap rankings. Source: 8marketcapAt $65,900, BTC has gained roughly 22% over the past five years, showing the asset’s volatility and reigniting questions about its role as an inflation hedge.
Many expect $55,000 to be the “ultimate market bottom”
Traders’ expectations that Bitcoin could drop below $55,000 align with views from analysts, major financial institutions and native market platforms.
Analysts at Standard Chartered project BTC could fall to $50,000 before potentially recovering toward $100,000, while CryptoQuant suggests $55,000 may represent the “ultimate market bottom.”
On Monday, CryptoQuant noted that Tether USDt (USDT) was under extreme liquidity stress, a signal reminiscent of the 2022 market bottom.
Source: CryptoQuantCryptoQuant also reported Saturday that stablecoin exchange flows indicate declining marginal buying power, with net USDT inflows to exchanges falling sharply from a one-year high of $616 million in November 2025 to just $27 million.
Related: Binance holds 65% of CEX stablecoin reserves as outflows cool
“This contraction indicates reduced liquidity ready to be deployed into crypto markets,” the company said in a report shared with Cointelegraph.
Despite the persisting bearish sentiment, some analysts highlight Bitcoin’s long-term value. Advocate Pierre Rochard described it as the “most undervalued asset in the world” in a post on X on Sunday.
Source: CoinbaseSimilarly, a Coinbase survey found about 70% of institutional investors view Bitcoin as undervalued when priced between $85,000 and $95,000, noting its continued underperformance relative to precious metals and equities.
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Source: https://cointelegraph.com/news/bitcoin-below-55k-polymarket-market-cap-dip?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
