According to prediction market traders, Bitcoin will likely end the year in a price range between $55,000 and $75,000. If Bitcoin has further to fall, then investing in prediction market event contracts could be one way to profit. Investing in Bitcoin-related stocks could be another way to profit from growth in the Bitcoin blockchain ecosystem. On Polymarket, traders are giving Bitcoin a 78% chance of hitting $55,000 this year, a 63% chance of hitting $50,000 this year, and a 51% chance of hitting $45,000 this year.
You could easily buy event contracts at any one of those price points, and then cash in as soon as Bitcoin falls in price from its current level of $68,000. You can also predict that Bitcoin will go (almost) all the way to zero. Polymarket traders are giving Bitcoin a 4% chance of hitting rock bottom at a price of just $5,000. These are roughly the same odds (5%) that Polymarket traders give Bitcoin to hit a price of $250,000 this year.
Another strategy for making money in a down crypto market is looking for different plays within the Bitcoin blockchain ecosystem. You can still get exposure to Bitcoin, but in a more indirect manner, by investing in Bitcoin-related stocks. For example, you could invest in Bitcoin mining stocks. The hottest players right now are Bitcoin miners that are transitioning some of their compute power to AI.
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