Polymarket Odds Surge to 79% for December Rate Hike
Prediction market traders are aggressively pricing in further macroeconomic tightening following a hot U.S. inflation report, driving a broad selloff across digital asset markets. According to Decrypt, traders on Polymarket and Myriad have elevated the odds of a near-term interest rate hike to 28%, a sharp increase from the 17% probability recorded earlier in the week.
The shifting sentiment is even more pronounced looking further out. Polymarket traders currently put the chance of a December rate hike at 79%. This repricing of macroeconomic expectations has triggered immediate consequences across the cryptocurrency sector, with the total crypto market cap shedding significant value as rate hike fears linger.
Crypto Markets Slide Amid Asian Stock Rout
The fallout from the inflation data and shifting prediction market odds is visible across major digital assets. As reported by CoinDesk, Bitcoin (BTC) tested the $81,000 support level before sliding to $80,957.23, representing a 2.94% decline. The cryptocurrency drawdown coincides with broader global market turbulence, including an Asian stock rout that dragged altcoins lower and a worsening AI sector selloff that helped push Bitcoin back under the $81,000 threshold.
Ethereum (ETH) suffered a steeper drop, falling 5.48% to trade at $2,366.39. The broader market weakness was captured by the CoinDesk 20 Index (CD20), which tracks the largest and most liquid cryptocurrencies, falling 4.20% to 2,219.98.
Altcoins were not spared from the inflation-driven drawdown. Solana (SOL) dropped 4.51% to $102.29, while XRP declined 4.83% to $1.31. Even newer tokens like HYPE saw losses, shedding 3.32% to land at $78.93, and Tron (TRX) experienced a milder 0.45% dip to $0.33.
The divergence between traditional financial data and real-time prediction market odds highlights the growing utility of platforms like Polymarket and Myriad for tracking macroeconomic sentiment. For traders looking to navigate these volatile event contracts, utilizing the best Polymarket tools and a reliable prediction market calculator has become essential for analyzing how the market expects the Federal Reserve to react in December.