Bitcoin saw its market value decline to $1.31 trillion, dropping to the 15th position globally as prices fell beneath $65,000. This prompted an increase in bearish speculation on Polymarket.

The probability of Bitcoin (BTC) falling below $55,000 has jumped to 72%, with $1.2 million in volume on the platform. Other bearish forecasts suggest price drops under $50,000 and $45,000, with respective odds of 61% and 47% and trading volumes of $170,000 and $1.4 million.

Odds that Bitcoin would drop below $55,000 surged 14% at the time of writing. Source: Polymarket

Bitcoin dipped below $65,000 on Sunday but rebounded to approximately $65,900. The data from TradingView supports this claim. Bitcoin’s market cap’s decline has resulted in being overtaken by the Vanguard S&P 500 ETF (VOO).

Yearly Decline of 25% in Bitcoin’s Market Cap

Bitcoin’s market capitalization has decreased by roughly $440 billion this year alone, which is about a 25% drop from around $90,000. The total crypto market cap has also fallen, losing around $760 billion or 24.5%.

Bitcoin now sits between the Vanguard S&P 500 ETF (VOO) and Berkshire Hathaway (BRK-B) in market cap rankings. Source: 8marketcap

At $65,900, BTC has recorded a 22% gain over the last five years, reinforcing the ongoing discussions regarding its position as a hedge against inflation.

Traders Expect $55,000 as the “Ultimate Market Bottom”

Many traders speculate that Bitcoin may sink below $55,000, a view echoed by analysts and major financial institutions. Analysts at Standard Chartered forewarn that BTC could plummet to $50,000 prior to a potential rise towards $100,000. Meanwhile, CryptoQuant identifies $55,000 as the possible “ultimate market bottom.”

Source: CryptoQuant

CryptoQuant also pointed out that Tether USDt (USDT) is under substantial liquidity stress, hinting at signals reminiscent of the 2022 market bottom. It has been reported that stablecoin exchange flows highlight a decreasing buying power, with net USDT inflows to exchanges collapsing from $616 million in November 2025 to merely $27 million.

Despite the prevailing bearish outlook, some analysts assert Bitcoin’s long-term potential. Advocate Pierre Rochard described it as the “most undervalued asset in the world” on social media.

Source: Coinbase

A Coinbase survey revealed that around 70% of institutional investors consider Bitcoin undervalued when its price ranges between $85,000 and $95,000, recognizing its lagging performance against gold and equities.