Predictions of Collapse in Bitcoin: USDT Faces Unprecedented Liquidity Crisis

The cryptocurrency market is currently experiencing a turbulent period reflected in increasingly bearish predictions about Bitcoin. Data from the decentralized prediction platform Polymarket shows that the community anticipates recessionary scenarios, with extremely high confidence levels in price declines. This pessimistic prediction environment coincides with a critical deterioration in venture capital availability, particularly in the stablecoin market.

Severe Contraction in Stablecoin Flows Signals Market Weakness

CryptoQuant data reveal a sharp decline in net stablecoin inflows to trading platforms. Since reaching a peak of $616 million in November 2025, this metric has collapsed to $27 million today, a reduction of over 95% in just three months. This level of contraction in fresh capital injection has not been seen since the bottom of the 2022 cycle, when the market faced a similar confidence crisis.

The decrease in stablecoin inflows is a critical signal: it indicates that investors are withdrawing capital or holding it in reserve, significantly weakening the marginal bullish momentum. With USDT being the dominant stablecoin in trading markets, this liquidity pressure represents a concerning structural factor for the sustainability of any future bullish rally.

Polymarket Records Increasingly Bearish Predictions for Bitcoin

The prediction market reflects bearish sentiment through explicit probabilities. On Polymarket, contracts related to Bitcoin declines have accumulated massive speculation volumes. The prediction that BTC will fall below $55,000 stands at a 72% probability, with $1.2 billion traded in these contracts. At lower levels, the community anticipates a 67% chance of breaking $50,000, while a collapse to $45,000 is valued with 47% confidence, with volumes of $170 million and $1.4 billion respectively.

These market predictions, combined with the liquidity contraction in USDT, paint a scenario where traders expect sustained downward pressure. With Bitcoin currently trading at $65.84K, the predictions suggest that a significant correction is widely anticipated by major players in the derivatives market.