Ultra-short-term cryptocurrency bets have surged in popularity with amateur traders on prediction markets, creating “even more mania” in digital tokens and new arbitrage opportunities for high-speed trading firms to exploit.
Contracts on whether the price of bitcoin and other cryptocurrencies will be higher or lower in five or 15 minutes are attracting roughly $70mn in daily trading volume across Polymarket and Kalshi, data from the two biggest prediction platforms shows.
Both platforms began offering 15-minute “up-down” bets on bitcoin, ethereum, solana and XRP late last year, and Polymarket has since added five-minute bets on the same five tokens.