The broader crypto market has remained under pressure for months, weighed down by persistent capital outflows.

At the latest reading, total market capitalization has fallen by $1.76 trillion since October 2025, underscoring the depth of the drawdown.

That trend, however, has started to shift.

Over the past two months, the market has absorbed $396 billion in fresh inflows, with a significant portion tied to April’s rebound. Within this recovery phase, prediction markets have emerged as a clear outlier, attracting a growing share of speculative and directional capital.

Capital rotates into prediction markets

While price action across major crypto assets has stayed relatively muted, capital has not remained idle. Instead, it has rotated…