Bitcoin

Prediction markets' rise (e.g., Polymarket) and UK tax hikes are not isolated to traditional gambling—they represent a regulatory and behavioral shift that reduces appetite for any unregulated, high-volatility betting-like instruments. Crypto markets, already in a fear zone (F&G 29), face similar headwinds as capital flows toward safer havens. This event reinforces the narrative that speculative excess is being punished globally.

Short sellers earned over $2.3 billion in profits by betting against gambling companies, driven by increased popularity of prediction markets in the US and steep tax rises in the UK.