- Bitcoin currently sits just above $20,000 on the open markets.
- Online sportsbooks give Bitcoin +150 odds to be under $17,500 by the end of the year.
- The next most likely outcome is that it sits between $17,501 and $20,000, with +200 odds.
LAS VEGAS – The price of Bitcoin currently sits at just above $20,000, but online oddsmakers favor it to go below $17,500 by the end of the year.
Bitcoin Value At Year End Odds
- Under $17,500 +150
- $17,501 To $20,000 +200
- $20,001 To $22,500 +350
- Over $25,000 +400
- $22,501 To $25,000 +650
Bitcoin has not fallen below $17,500 since November 2020, when it started spiking upwards, and didn’t stop until about the same time the next year.
Now, with the Federal Reserve raising interest rates, the amount of cheap credit and investment money that was flowing into Bitcoin is slowing down.
This situation – where Bitcoin is perceived by the markets to be a speculative asset – could lend credence to the idea that Bitcoin is headed a bit further down.
The logic here is that Bitcoin was invested in with the idea of making a profit by selling it off to the next person.
If that is true, interest rates going up will lower the amount of investment possible. In other words, Bitcoin’s spike was a product of cheap credit and easy access to investment capital. Now that market conditions have changed, it’s possible further declines are on the way.
The sportsbooks giving Bitcoin +150 odds to be below $17,500 shows that they believe more moves in this direction are likely.
The next most likely outcome is that it sits in the valley between $17,500 and $20,000, which it has mostly sat just above for the recent past.
While it has dipped below $20,000, it has tended to rebound above it within days or weeks. Still, the downward trend is noticeable.
One noteworthy aspect of these odds is that they come from Bovada, an online gambling provider that deals in Bitcoin as a matter of course.
This is a shining example of the purity of sportsbooks. Bovada is likely to have holdings in Bitcoin, but that won’t stop them from offering odds on their own holdings decreasing in value.