Kalshi Traders Bet on Bitcoin Reversal Amid Institutional Adoption Disconnect
Bitcoin's recent surge to above $77,000 has been met with caution from traders on Kalshi, who expect some of those gains to fade by year-end. Contracts put Bitcoin at about $77,000 in December, suggesting limited upside after the recent rally.
This shift in expectations is a significant change from just before Wednesday's rally, when contracts priced Bitcoin at around $66,000 for year-end. This shows how quickly traders' views have changed in response to the market's rapid movement.
Despite the rally being fueled by President Donald Trump's call to advance the CLARITY Act and CFTC Chairman Michael Selig's direction to prepare rules for crypto markets, institutional adoption of blockchain technology is not necessarily translating into buying the linked tokens. STS Digital CEO Maxime Seiler pointed out that 'we're in crypto winter price-wise where we're in institutional summer', highlighting the disconnect between token prices and institutional interest.