If you’re like many crypto investors, you might have already given up on Bitcoin (CRYPTO: BTC). The world’s most popular cryptocurrency is down a staggering 47% since October, and currently trades for just $72,000.
However, there are a surprising number of investors still playing offense with Bitcoin. The easiest place to see this is in the prediction markets, where it’s possible to place wildly bullish bets on the future price of Bitcoin.
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Right now, Polymarket traders are giving Bitcoin a 4% chance of topping $150,00 by June. And the outlook is much the same on Kalshi. There, prediction market traders give Bitcoin a 6% chance of topping $150,000 by the end of June.
On the surface, those might appear to be dismally low odds. Imagine if your co-worker told you, “There’s only a 4% chance of me showing up at the office in June.” Or what if your child told you, “There’s only a 4% chance of me passing my exam in June.” Understandably, you’d be a bit distraught. Those aren’t good odds.
But those 4% odds might not be as low as you think. For example, those are roughly the same odds as a top-level golfer winning a PGA golf tournament these days, and there are plenty of people willing to place that bet.
For example, take a look at the prediction market for “Masters Tournament Winner” on Robinhood Markets (NASDAQ: HOOD). You can find $0.03 contracts for Justin Rose and Patrick Reed to win the Masters in April, implying roughly 3% chances to win. There are only nine other golfers in the world with better odds.
So why do traders remain stubbornly bullish on Bitcoin’s future prospects? The answer is simple: Bitcoin’s volatility. Simply stated, Bitcoin is capable of making massive moves to the upside, and that’s what excites investors.
From a risk-averse perspective, of course, volatility is bad. It can be hard to sleep at night when you’re holding a very volatile asset. But from a risk-seeking perspective, volatility is really good. It means a cryptocurrency can absolutely explode in value.
Check out Bitcoin’s historical return data. In seven of the past 14 years, Bitcoin has delivered triple-digit returns. And some of those years have been absolutely epic. In 2013, Bitcoin skyrocketed in price by 5,428%.
