Asia Morning Briefing: Even Prediction Markets Didn’t See BTC's Selloff Coming

Bitcoin's recent decline to around $92,500 marks a significant shift in market sentiment, as prediction markets rapidly adjusted their outlook. Traders have moved from expecting mild weakness to viewing the downturn as indicative of a deeper structural issue. This drop represents a 27% decrease from last month's peak and has influenced both retail and institutional investors, catching them off guard. Analysts are noting signs of late-stage capitulation while warning that the market might not have reached a true bottom yet. On-chain data reflects significant losses for traders but lacks the capitulation signals typically observed during a market bottom. Meanwhile, Ether has also seen significant drops, further illustrating the overall bearish trend across cryptocurrencies. Investors remain cautious as they digest the impact of economic factors, including Fed rate expectations, and prepare for potential volatility in the weeks ahead.

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