Oddsmakers sour on Bitcoin, say $10,000 dip looks increasingly likely
Bitcoin has fallen more than 40% in the past two months, and betting companies are starting to bet that the cryptocurrency is in for a much steeper fall.
Bookmakers at US-Bookies.com have increased the chance of Bitcoin falling to $ 10,000 this year to 8-in-11 - an implied probability of 57.9%.
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A handful of bookmakers are even more pessimistic. Bitcoin currently has a 33-to-1 probability of falling below $ 1,000 by the end of the year (only an implied probability of 2.9%). That's unlikely, of course, but it's noteworthy that the probability of the cryptocurrency falling that low was 250 to 1 in mid-April (an implied probability of 0.4%).
Making such bets on crypto, at least in a casino or online betting forum, is illegal in the US. US bookies' data comes from European and global markets where permitted.
The shift in quota-maker sentiment comes amid bullish and bearish news about Bitcoin. El Salvador recently recognized crypto as legal tender. And the global banking supervisory authorities are increasingly signaling an increasing acceptance of the digital currency.
But news that the US government has recovered almost all of the ransom paid by Colonial Pipeline shattered some investors' confidence in the safety of bitcoin transfers. Meanwhile, the IRS has stated that it is prioritizing efforts to enforce tax collection for Bitcoin trading.
Bitcoin rose slightly 2.5% to $ 37,115 in midday trading on Thursday, according to Coindesk. However, just a month ago it was trading at $ 55,715.
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This story was originally featured on Fortune.com
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