Prediction platform Polymarket recently released a new feature that allows users to bet on the price movements of cryptocurrencies every five minutes.
This event demonstrates the growing demand for real-time crypto sentiment data among traders and investors.
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Real-time sentiment drives short-term contracts
For now, the new market is limited to Bitcoin, but major altcoins will also be supported.
Prices are updated dynamically based on market sentiment and immediate price reactions. All transactions are performed on-chain to ensure transparency and security.
This feature is targeted at day traders and cryptocurrency enthusiasts looking for a fast-paced experience. Bitcoin’s recent decline has made price movements increasingly volatile, increasing short-term volatility.
This effort builds on existing contracts with varying durations, from 15-minute and hourly intervals to four-hour time slots. Prediction markets have also seen exponential growth in usage, with individual polls recording trading volumes reaching hundreds of millions of dollars.
This also reflects growing concerns that shifting attention to these platforms could distort the core purpose and use cases of cryptocurrencies.
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Market weakness accelerates betting activity
Bets on cryptocurrencies account for a large share in a wide range of polls provided by prediction platforms such as Polymarket and Kalshi. More specifically, many of these contracts focus on predicting the future prices of key digital assets.
Interest in these bets has surged in recent months.
Along with heavily traded contracts related to Ethereum, XRP, and Solana, the February price of Bitcoin alone has seen tens of millions of dollars in trading volume.
These predictions are gaining traction as the broader crypto market struggles to regain momentum. In this environment, volatility itself appears to be driving participation, with traders using market weakness as short-term betting opportunities.
While the prevalence of such polls has generated considerable trading activity, it has also drawn capital and attention away from underlying fundamentals.
There is a danger that the cryptocurrency narrative shifts to probabilities and crowd positioning, rather than a continued focus on integration and real-world use cases.
Polymarket’s new 5-minute betting feature further amplifies that dynamic.
If price-based gambling continues to attract more funds than long-term allocations, the market may increasingly revolve around price fluctuations rather than sustainable value creation.
