BTC Market Capitalization Plummets as Polymarket Shows 72% Probability of $55K Support Level
As Bitcoin prices fall beneath $65,000, its market capitalization descended to $1.31 trillion, positioning it 15th in global rankings while bearish sentiment intensifies on Polymarket.
Over the weekend, Bitcoin descended beneath the $65,000 threshold before finding stability on Monday, while participants on the Polymarket prediction platform ramped up wagers suggesting the digital asset's downturn hasn't yet concluded.
On Monday, the probability that Bitcoin (BTC) would descend below $55,000 surged to 72% on Polymarket, accompanied by $1.2 billion in platform trading volume.
Additional pessimistic wagers encompass potential price drops below $50,000 and $45,000, carrying odds of 67% and 47%, with corresponding trading volumes reaching $170,000 and $1.4 billion.
On Sunday, Bitcoin momentarily dipped under $65,000 before rebounding to approximately $65,900 as of this writing, based on data from TradingView.
The market capitalization of Bitcoin likewise declined to approximately $1.31 trillion, positioning it beneath the Vanguard S&P 500 ETF (VOO) and relegating it to the 15th spot globally during the persistent cryptocurrency market downturn, per data from 8marketcap.
Bitcoin's market cap experiences 25% decline year-to-date
The market capitalization of Bitcoin has contracted by approximately $440 billion throughout this year, representing about one-quarter of its total value, as prices tumbled from approximately $90,000.
The aggregate cryptocurrency market capitalization has experienced a comparable decline, losing roughly $760 billion, representing a 24.5% decrease, based on data from CoinGecko.
Trading at $65,900, BTC has appreciated approximately 22% throughout the previous five years, demonstrating the asset's volatility and prompting renewed debate regarding its effectiveness as a hedge against inflation.
Many expect $55,000 to be the "ultimate market bottom"
Market participants' anticipation that Bitcoin might descend below $55,000 corresponds with perspectives from industry analysts, prominent financial institutions and cryptocurrency-native market platforms.
Standard Chartered analysts forecast BTC could decline to $50,000 before a possible rebound toward $100,000, whereas CryptoQuant proposes that $55,000 might constitute the "ultimate market bottom."
CryptoQuant observed on Monday that Tether USDt (USDT) was experiencing severe liquidity stress, an indicator that echoes the 2022 market bottom conditions.
Additionally, CryptoQuant disclosed on Saturday that stablecoin exchange flow patterns suggest diminishing marginal purchasing power, with net USDT exchange inflows plummeting dramatically from a one-year peak of $616 million in November 2025 down to merely $27 million.
"This contraction indicates reduced liquidity ready to be deployed into crypto markets,"
the firm said in a report shared with Cointelegraph.
Notwithstanding the ongoing bearish sentiment, certain analysts emphasize Bitcoin's long-term potential value. Advocate Pierre Rochard characterized it as the "most undervalued asset in the world" in a post on X on Sunday.
In a similar vein, a Coinbase survey determined that approximately 70% of institutional investors regard Bitcoin as undervalued when trading between $85,000 and $95,000, acknowledging its ongoing underperformance when compared to precious metals and equity markets.