In 2025, prediction markets stopped acting like a sideshow and started behaving like a real financial category.
Prediction Markets Go Mainstream What began as a niche experiment in forecasting elections and sports quietly evolved into a multibillion-dollar ecosystem touching Wall Street, media giants, professional sports, and crypto infrastructure.
From regulatory victories and courtroom battles to record volumes, blockbuster fundraises, and mainstream media integrations, prediction markets spent 2025 elbowing their way into the center of the conversation—and mostly winning the fight.
A Strong Start, With Lawyers in the Background The year opened with momentum already in motion. Polymarket entered January averaging more than $1 billion in monthly trading volume, riding engagement that never faded after the 2024 election cycle. Kalshi, meanwhile, leaned harder into sports and economic markets while preparing for legal tests that would define its future.
Those tests arrived quickly. In January, Kalshi found itself back in court challenging federal restrictions on political event contracts, while state regulators sharpened their knives. The legal uncertainty did little to slow participation, but it ensured that prediction markets would spend much of 2025 proving they belonged.
Regulation Tightens—Then Starts to Blink By February, regulators were paying closer attention. The Commodity Futures Trading Commission scheduled public discussions around event contracts, signaling that prediction markets were no longer flying under the radar. State-level scrutiny intensified, setting the stage for clashes that would unfold over the spring.
March delivered both innovation and confrontation. Blockchain-native protocol Myriad launched with an onchain, non-custodial model using stablecoins, reinforcing prediction markets’ growing overlap with crypto rails. At the same time, New Jersey regulators issued a cease-and-desist order against Kalshi, accusing it of operating unlawful gambling markets.
Kalshi responded the way it would all year: by suing back.
Prediction Markets Had Their Breakout Year in 2025 — and There Was No Going Back
Courtrooms, Clarity, and a Federal Green Light April marked a turning point. A federal judge blocked New Jersey’s enforcement action, siding—at least temporarily—with Kalshi’s argument that federal commodities law preempts state gambling statutes. Days later, the CFTC dropped its appeal in Kalshi’s election-contract case, effectively leaving a pro-market ruling intact.
The message was unmistakable: prediction markets had found firmer footing at the federal level, even if states continued to resist. Trading activity reflected that shift almost immediately, with Kalshi posting hundreds of millions in volume tied to fast-resolving sports events.
Growth Accelerates as Legal Fog Lifts By May, participation accelerated. Kalshi reported weekly volumes approaching $1 billion, a staggering jump from the prior year. Sports accounted for most activity, but economics, crypto, and political markets quietly gained traction beneath the headline numbers.
Industry-wide, the tone changed. Venture capital interest deepened, institutional observers began framing prediction markets as information tools rather than novelty bets, and whispers of partnerships with mainstream platforms grew louder.
Deals, Integrations, and Wall Street Curiosity June brought confirmation. Polymarket revealed it had acquired a small CFTC-licensed exchange to facilitate a U.S. return, a strategic move that signaled long-term intent rather than regulatory brinkmanship. Kalshi, meanwhile, inked a distribution partnership with Robinhood, pushing prediction markets directly into a retail trading app used by millions.
The subtext was clear: prediction markets were no longer content living at the edges of the internet.
Summer Funding and the Push Toward the U.S. Throughout the summer, capital flowed in. Polymarket raised additional funding while preparing for its U.S. relaunch, attracting backers spanning crypto-native funds and traditional venture firms. Kalshi ramped marketing and expanded categories, even turning live odds into subway ads—a subtle flex that would have seemed absurd a few years earlier.
Behind the scenes, lawmakers debated whether these markets could serve public forecasting functions. No laws changed, but the conversation itself marked progress.
The U.S. Door Reopens September delivered one of the year’s defining moments: Polymarket regained approval to operate in the United States. The timing aligned neatly with major sports seasons and renewed political speculation, pushing combined weekly volume across leading platforms past $2 billion.
State battles continued, but user growth did not wait for unanimous permission.
October’s Capital Floodgates Open October was the month when prediction markets went unmistakably big. Intercontinental Exchange (ICE), owner of the New York Stock Exchange (NYSE), announced plans to invest up to $2 billion in Polymarket, valuing the company in rarefied territory and cementing Wall Street’s interest in event-driven data.
Kalshi followed with a massive funding round of its own, pushing its valuation into fintech’s upper tier. At the same time, Google began integrating prediction market data into search and finance tools, ensuring millions would encounter probabilistic forecasts whether they asked for them or not.
November Sets Records Across the Board November shattered expectations. Combined platform volumes reached historic highs, with industry-wide trading estimated at roughly $44 billion for the year. Kalshi and Polymarket each cleared multibillion-dollar monthly totals, while new competitors crossed billion-dollar weekly thresholds.
Major media outlets followed suit. Yahoo Finance integrated prediction market data directly into its pages, while CNN prepared on-air odds segments. Sports partnerships expanded, including high-profile deals with the NHL and UFC, pushing prediction markets into live broadcasts.
Prediction Markets Had Their Breakout Year in 2025 — and There Was No Going Back
December Brings Expansion—and Competition By December, prediction markets were no longer alone. Draftkings launched a federally compliant prediction app in dozens of states, validating the regulatory path pioneered earlier in the year. A newly launched competitor, Myriad, integrated directly into a major crypto wallet, bringing event trading into a native Web3 environment.
The year closed with optimism, but not without tension. State-level resistance persisted, and lawsuits lingered. Still, participation broadened beyond sports, with economics, tech, and politics showing the fastest growth rates.
A New Asset Class Finds Its Place$BTC By year’s end, prediction markets looked less like a curiosity and more like an emerging asset class. They blended regulated exchanges, blockchain settlement, real-time data, and crowd-based forecasting into something difficult to ignore—and increasingly difficult to stop.
If 2025 proved anything, it’s that prediction markets are done asking whether they belong. The only remaining question is how far they push next.$BTC
Bitcoin ETFs seeing heavy outflows — U.S. Bitcoin ETFs lost roughly $825M in just five days, a sign of weak demand from U.S. investors that could influence BTC price movements. $BTC Binance Sentiment remains in “extreme fear” for the 14th day straight, showing caution among traders despite BTC holding higher prices. Binance BTC is showing lower correlation with traditional tech stocks, hinting it’s decoupling from broader markets. TradingView$BTC Price stability near $88–89 K as year-end trading remains thin; experts point to range-bound movement typical of holiday markets. The Economic Times Market fundamentals still strong, says a Strategy CEO, despite volatility and drop from ATH earlier in 2025. TradingView 📉 Volatility & Liquidity Events Flash crash on specific trading pair saw BTC briefly drop to around $24,000 on Binance’s BTC/USD1 pair, though it quickly recovered — liquidity issues likely to blame. BeInCrypto Analysts are warning that a $23 B options expiry could trigger major BTC volatility in coming sessions. The Economic Times 🌍 Macro & Strategic Trends Silver and gold surging far more than Bitcoin, challenging the idea that BTC behaves like a “hard asset” alongside precious metals. CryptoSlate Reports suggest possible use of nuclear power for Bitcoin mining is being discussed between Russia and the U.S., which could reshape mining infrastructure and costs.
Coinpedia Fintech News On-chain data shows $230M in BTC moved to exchanges by whales which can be a sign of traders preparing for price moves (but BTC still held range). AMBCrypto 🧠 Long-Term Views & Outlook Some analysts are debating whether BTC is a buy, sell, or hold heading into 2026, weighing the broader macro outlook. The Motley Fool Long-term forecasts and sentiment pieces discuss the potential multi-cycle bullish momentum for Bitcoin years ahead. $BTC #
Historically, gold ($XAU ) tends to move first in a liquidity cycle, while Bitcoin ($BTC ) follows with a delayed but often stronger move. That pattern has repeated across multiple market cycles. Gold is climbing again, and as with every cycle, it will eventually reach a top. When that happens, liquidity doesn’t disappear — it rotates. This is usually the moment Bitcoin steps in, picking up the baton and leading the next major run. Different assets, same liquidity cycle. In markets like these, timing is everything.#CPIWatch
“Bitcoin will one day overtake gold.” — President Trump What once sounded impossible is now unfolding. Digital scarcity vs. physical metal.$BTC History is being written. $BTC #GOLD
Check this out — this is exactly why I always say: patience pays.
$BNB just proved it once again.
Price spent time cooling off and building a solid base. No panic, no forced moves. And the moment buyers stepped back in, the recovery started — clean, controlled, and healthy.
That bounce from the lower zone clearly shows strong buyer interest. Those who stayed calm instead of reacting emotionally are already seeing the reward.
The chart still looks strong: • Higher lows are forming • Momentum is gradually rebuilding • Buyers remain active after a healthy pullback
As long as $BNB holds above its key support zone, the upside remains open.
Trade View – Bullish structure intact – Buyers in control – Further upside likely if momentum continues
Sometimes the market needs time. But when the move comes — it pays big.
Stay patient. Stay disciplined$BNB Let the chart do the work. 📈
Bitcoin traders are on alert ahead of Thursday’s US CPI release as markets rethink interest-rate ex
Bitcoin traders are on alert ahead of Thursday’s US CPI release as markets rethink interest-rate expectations following comments from Fed Governor Stephen Miran.$BTC Miran argued that inflation is closer to the Fed’s 2% target than headline data suggests, saying much of the remaining pressure comes from statistical distortions, not real demand. According to the CME FedWatch Tool, markets now price a 75.6% chance of no rate change at the January 2026 Fed meeting, reinforcing a softer long-term rate outlook.$BTC He pointed to lagging shelter inflation and portfolio management fees as factors overstating price pressures, warning the Fed risks keeping policy too tight for too long. Miran also downplayed the inflation impact of US tariffs, estimating consumer prices are affected by only around 0.2%, while forward-looking indicators suggest renewed disinflation in the months ahead. With CPI due Thursday, Bitcoin volatility could spike if data supports the case for earlier or deeper rate cuts — a scenario that would strengthen the bullish macro backdrop for $BTC .
Direct and Focused (Good for a quick market update)
Ethereum is stuck! 😩 We're seeing some serious volatility right now, trapped between $3,051 and $3,272, and there's no clear direction.$ETH
The good news? The bulls are holding the line at $3,000. If we can punch through and stay above $3,200, I'm eyeing a rally toward $3,400 (especially if the institutions jump in).$ETH
The bad news? A dip below that $3,000 floor could send ETH sliding back toward $2,800. This Fed/macro uncertainty combined with low liquidity is definitely fueling the downside risk. Stay safe out there!
$STG successfully broke out to 0.1395 and has since settled near the 0.131 level.
The current pullback remains shallow relative to the initial breakout leg. Key Insight: As long as the price respects the 0.128 area, this appears to be a phase of consolidation, rather than a sign of underlying weakness.$STG