Fading BTC volatility, volume push traders toward AI stocks and prediction markets

Fading BTC volatility, volume push traders toward AI stocks and prediction markets Traders are rotating from crypto into AI-related stocks and prediction markets as Bitcoin’s volatility and trading volume fall sharply, CoinDesk reported. CoinDesk said BTC’s 30-day realized volatility had dropped to an annualized 42%, while narratives that had previously driven the market, including issues tied to U.S. President Donald Trump and digital asset treasury companies, had lost momentum. It added that delays in regulatory progress on the U.S. CLARITY Act were also extending declines in trading volume and liquidity. According to CoinDesk, traders are moving funds into AI-related equities and prediction markets such as Kalshi and Polymarket, where returns may be more attractive. The outlet added that exchanges and trading firms are moving to cut costs and reduce headcount, and said a wait-and-see mood is likely to persist until regulatory clarity improves or another macroeconomic trigger emerges.