71% of Traders Bet Bitcoin Will Drop Below $55K by 2026

Key Insights

• Bitcoin price bets shifted bearish across prediction markets
• ETF outflows and sentiment weakness weighed on short-term outlook
• Strategy continued accumulation despite price trading below cost basis

Bitcoin price came under renewed pressure on Thursday as traders on Polymarket and Kalshi increased bearish bets for 2026. Market participants priced higher probabilities of declines as sentiment weakened across derivatives and spot markets. The shift followed ETF outflows and macro-driven uncertainty tied to Federal Reserve policy expectations.

Polymarket data showed that traders assigned a 71% probability that Bitcoin price would fall below $55,000 before Dec. 31, 2026. This shift occurred because market sentiment deteriorated after recent volatility and institutional flows slowed. The move followed a broader reassessment of risk assets as traders adjusted expectations after multiple rate-driven selloffs.

Polymarket activity indicated that downside positioning accelerated within a single trading session. Traders increased bearish bets by 13 percentage points compared with the previous day, reflecting a rapid sentiment shift. Kalshi data mirrored this positioning, as participants priced strong probabilities for Bitcoin price trading below key psychological levels.

Kalshi contracts showed that traders expected Bitcoin price to remain under pressure throughout the year. Market participants assigned a 65% likelihood of Bitcoin price dropping below $55,000, reinforcing a consistent bearish outlook across platforms. This alignment suggested that retail and institutional sentiment converged toward downside expectations.

The move followed a broader pattern where prediction markets reacted quickly to macroeconomic signals. These platforms increasingly reflected short-term expectations tied to liquidity conditions and central bank policy shifts.

Farside Investors data showed that U.S. spot Bitcoin exchange-traded funds returned to net negative flows midweek. Outflows concentrated in the Fidelity Wise Origin Bitcoin Fund, while BlackRock’s offering also recorded withdrawals. This reversal occurred after a brief stabilization phase in ETF demand.

The decline in flows coincided with a shift in sentiment toward “extreme fear,” reflecting weaker appetite for risk assets. That reaction mirrored historical patterns where ETF outflows aligned with short-term Bitcoin price corrections. Institutional demand remained a key driver of price stability, and reduced inflows weakened support levels.

The selling pressure emerged as Bitcoin traded below Strategy’s average acquisition cost of $75,696. This positioning increased market scrutiny over corporate treasury strategies, though expectations for continued accumulation remained intact.

Polymarket contracts showed that traders assigned less than 15% probability of Strategy selling Bitcoin in 2026. This indicated that market participants still expected long-term holding behavior despite short-term price weakness. The expectation aligned with Strategy’s historical approach of accumulating during drawdowns.

Company disclosures confirmed that Strategy expanded its holdings to 761,000 BTC after purchasing 22,337 coins for approximately $1.6 billion. The acquisition marked one of its largest weekly purchases since late 2024. This activity suggested that corporate buyers continued to view lower prices as entry opportunities.

BSC News reporting highlighted a shift in Strategy’s funding structure, with STRC preferred securities contributing a larger share of capital. This adjustment indicated evolving financing methods as the firm scaled its Bitcoin exposure. The move followed a reduction in reliance on equity sales compared with earlier periods.

Market analyst Ted Pillows noted that Bitcoin price historically declined after recent Federal Open Market Committee meetings. Data showed that declines ranged between 6% and 30% across the last six events. This pattern influenced trader expectations for continued volatility tied to macro policy signals.

The observed trend reflected Bitcoin’s sensitivity to interest rate outlooks and liquidity conditions. Traders increasingly priced macro-driven scenarios into prediction markets, amplifying short-term bearish positioning. This connection between macro events and Bitcoin price behavior remained a dominant theme in 2026.

Bitcoin price now faces a near-term test around the $55,000 psychological level as bearish positioning builds. Market direction will likely depend on ETF flow stabilization and macroeconomic signals from upcoming policy decisions.

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