If you're like many crypto investors, you might have already given up on Bitcoin (BTC 0.38%). The world's most popular cryptocurrency is down a staggering 47% since October, and currently trades for just $72,000.
However, there are a surprising number of investors still playing offense with Bitcoin. The easiest place to see this is in the prediction markets, where it's possible to place wildly bullish bets on the future price of Bitcoin.
Polymarket and Kalshi odds for Bitcoin
Right now, Polymarket traders are giving Bitcoin a 4% chance of topping $150,00 by June. And the outlook is much the same on Kalshi. There, prediction market traders give Bitcoin a 6% chance of topping $150,000 by the end of June.
Image source: Getty Images.
On the surface, those might appear to be dismally low odds. Imagine if your co-worker told you, "There's only a 4% chance of me showing up at the office in June." Or what if your child told you, "There's only a 4% chance of me passing my exam in June." Understandably, you'd be a bit distraught. Those aren't good odds.
But those 4% odds might not be as low as you think. For example, those are roughly the same odds as a top-level golfer winning a PGA golf tournament these days, and there are plenty of people willing to place that bet.
For example, take a look at the prediction market for "Masters Tournament Winner" on Robinhood Markets (HOOD 3.43%). You can find $0.03 contracts for Justin Rose and Patrick Reed to win the Masters in April, implying roughly 3% chances to win. There are only nine other golfers in the world with better odds.
Bitcoin's volatility
So why do traders remain stubbornly bullish on Bitcoin's future prospects? The answer is simple: Bitcoin's volatility. Simply stated, Bitcoin is capable of making massive moves to the upside, and that's what excites investors.
CRYPTO: BTC
Key Data Points
From a risk-averse perspective, of course, volatility is bad. It can be hard to sleep at night when you're holding a very volatile asset. But from a risk-seeking perspective, volatility is really good. It means a cryptocurrency can absolutely explode in value.
Check out Bitcoin's historical return data. In seven of the past 14 years, Bitcoin has delivered triple-digit returns. And some of those years have been absolutely epic. In 2013, Bitcoin skyrocketed in price by 5,428%.
If you divide Bitcoin's performance into quarters, it's easy to see how dramatic the price swings can be. Even in years when Bitcoin has delivered triple-digit returns, there have been losing quarters. That was the case in 2023 and 2024, for example. The price of Bitcoin doesn't go straight up, which is what makes it so frustrating at times.
As for me, I've learned to embrace Bitcoin's volatility. For me, volatility is the price you pay for higher potential rewards in the future. Bitcoin might only have a 4% chance of reaching $150,000 by June, but that doesn't mean it won't eventually top that price point.
