The possibility of further declines in Bitcoin (BTC) and Ethereum (ETH) is growing quickly in prediction markets. The market is seen as assigning higher odds that Bitcoin will fall to $55,000 before it recovers $80,000, and that Ethereum will drop to $1,500 before it regains $3,000.

Decrypto reported on June 25 that prediction-market participants are pricing a 77 percent chance that Bitcoin will hit $55,000 before reaching $80,000. Ethereum was also seen as more likely to fall to $1,500 than to recover $3,000, with the probability at 88 percent.

Recent price moves also support that view. Bitcoin fell as low as $59,511 intraday, down about 1 percent over 24 hours and about 23 percent over the past month. It also slipped to around $58,000 intraday, marking the lowest level since last year.

Ethereum also remained weak. It fell to $1,576, down 2.6 percent on the day and more than 25 percent over the past month. Its current price is only a little more than 5 percent above $1,500, which prediction markets see as a key level.

Market anxiety is spreading beyond cryptocurrencies. Shares of Strategy, the largest publicly listed company holding Bitcoin, traded around $88 after falling about 7 percent intraday. The stock is down 45 percent over the past month.

STRC, a preferred stock-like product of the company, fell about 22 percent over the same period and slid to $73.62 intraday to mark a record low. Matt Hougan (맷 호건), chief investment officer at Bitwise, singled out STRC as the most important variable in the market right now. "Right now, STRC has become the dog wagging Bitcoin's tail," he said, adding that market attention is focused on STRC prices rather than macroeconomic variables.

In the market, concerns are being raised that if STRC weakness persists, Strategy could face funding pressure and be forced to sell its Bitcoin holdings. The possibility of a so-called death spiral is seen as weighing on market sentiment.

Investors are therefore watching whether Strategy can ease dividend burdens and strengthen liquidity through ways to secure cash.

Ethereum is seen as being affected more by broader risk-off sentiment than by its own negative factors. "Ethereum is effectively caught in crossfire," Hougan said, adding that anxiety surrounding Bitcoin and Strategy is spreading to Ethereum.

The longer-term outlook is also not optimistic. Prediction market Kalshi is pricing a 36 percent chance that Bitcoin will fall below $40,000 within this year and a 34 percent chance that Ethereum will drop below $1,000. Bitcoin is currently about 53 percent below its record high of $126,080 set in October last year, while Ethereum is down more than 68 percent from its peak last year.

The market sees Bitcoin at $55,000 and Ethereum at $1,500 as key price levels that will divide investor sentiment for the time being. It is also seen as important whether STRC weakness eases and whether Strategy presents ways to secure liquidity, as major variables determining whether the crypto market declines further.