Research shows Bitcoin contracts on prediction market Kalshi increasingly lead Binance price discovery as BTC breaks $68,000
Research by financial forecasting firm Synth has found that the price movements of 15-minute Bitcoin contracts on Kalshi are increasingly predictive of subsequent Bitcoin price changes on Binance. Since January, the correlation between Kalshi's leading movements and Binance's subsequent movements (0-2 seconds later) has increased from 0.036 to 0.173 in August. The study notes that sophisticated trading firms on Kalshi utilize tools such as order books and perpetual futures to predict Bitcoin prices 5 to 30 seconds in advance. This research was released as Bitcoin prices broke above $68,000, reaching $68,500 at one point, rising 6% amid a short squeeze that liquidated over $1 billion in short positions.
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