In a noteworthy move to attract more crypto-native users, prediction marketplace Kalshi has begun accepting Bitcoin (BTC) deposits. This initiative aims to broaden its customer base, particularly appealing to the burgeoning community of cryptocurrency traders.
Kalshi, known for its unique model that allows users to bet on a wide array of events, including election outcomes and film ratings, has reported a significant increase in engagement from crypto traders. As of April 9, the platform has recorded a staggering $143 million in trading volume for event contracts focused on Bitcoin’s fluctuating prices.
Regulated by the US Commodity Futures Trading Commission (CFTC), Kalshi has expanded its offerings to include about 50 crypto-related event contracts. These contracts range from predictions regarding the peaks and dips of various cryptocurrencies in 2025 to speculative markets surrounding significant headlines, such as proposals for a National Bitcoin Reserve by US President Donald Trump.
Kalshi has doubled down on crypto event contract markets. Source: Kalshi
The platform had previously initiated crypto transactions in October by accepting stablecoin USD Coin (USDC) deposits, marking its entry into the cryptocurrency space. Kalshi utilizes ZeroHash, a crypto payment infrastructure provider, for processing Bitcoin and USDC deposits and subsequently converting them into US dollars. It is essential to note that the exchange only accepts Bitcoin deposits from the Bitcoin network.
Most Kalshi traders no longer expect core tokens to earn positive returns this year. Source: Kalshi
Related: Kalshi traders place the odds of US recession in 2025 at over 61%
More Accurate Than Polls
Since its launch in 2021, Kalshi has gained traction as a leading prediction market, particularly ahead of significant political events such as the US’s November elections. The platform emerged as a preferred venue for forecasting 2024 political outcomes, especially after successfully contesting a CFTC lawsuit that sought to prohibit it from listing election-related contracts.
Despite concerns regarding the impact of political prediction markets on the electoral process, analysts suggest that such markets often reflect public sentiment more accurately than traditional polling methods. Notably, Kalshi showcased its predictive prowess by forecasting Donald Trump’s victory in the presidential election when polls suggested a tightly contested race.
As of April 9, Kalshi traders indicated a 68% probability for the US entering a recession, according to the platform’s data. Additionally, in March, Kalshi formed a strategic partnership with Robinhood to integrate prediction markets within the popular online brokerage, yielding an immediate positive response with Robinhood’s stock surging by 8% following the announcement.
Kalshi competes with platforms like Polymarket, which has reported impressive trading volumes—over $3 billion—tied to the US presidential election, despite prohibitions against US traders accessing its offerings.
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