Breaking Crypto News: Crypto.com Hires Market Maker for Prediction Market

• Crypto.com posts job for quantitative trader to manage prediction market contracts
• Practice creates potential conflict of interest with retail users
• Market structure suggests this mirrors traditional sports betting operations
• Global crypto sentiment at "Extreme Fear" with Bitcoin at $87,812

NEW YORK, December 23, 2025 — Cryptocurrency exchange Crypto.com is hiring a market maker for its in-house prediction market, according to Bloomberg reporting. This breaking crypto news reveals the exchange has posted a job opening for a quantitative trader to manage financial contracts linked to sporting event outcomes. The move comes as global crypto sentiment registers "Extreme Fear" with Bitcoin trading at $87,812, down 2.56% in 24 hours.

Market Context & Background

Prediction markets represent a $4.2 billion industry facing increasing regulatory scrutiny. The practice of in-house market making creates structural conflicts similar to traditional sports betting operations. Market structure suggests exchanges operating proprietary trading desks face inherent information asymmetry challenges. This development follows recent volatility in altcoin markets and regulatory pressure on prediction platforms globally. Related developments include significant altcoin market cap declines and shifting Bitcoin accumulation patterns that mirror late-stage bull run dynamics.

What Happened?

Crypto.com confirmed the job posting for a quantitative trader position focused on prediction markets. The role involves buying and selling financial contracts tied to sporting event outcomes. The exchange stated its internal market makers don't have preferential information access over retail users. Crypto.com emphasized proprietary trading doesn't serve as a revenue source. Other platforms including Kalshi and Polymarket operate similar market-making structures through affiliated entities like Kalshi Trading.

Technical Analysis & Price Action

Bitcoin currently tests the $87,500 support level after rejecting at $90,200 resistance. The 50-day moving average at $85,300 provides secondary support. RSI readings at 42 indicate neutral momentum with bearish bias. Volume profile shows concentrated liquidity between $86,000-$88,000. Market structure suggests a potential liquidity grab below $86,500 could trigger stop-loss cascades. The Fibonacci 0.618 retracement level at $84,800 represents critical technical support. Bullish invalidation occurs below $84,000. Bearish invalidation requires reclaiming $90,500 with sustained volume.

By The Numbers

Why It Matters

Institutional implications center on regulatory classification. The SEC could interpret prediction market operations as unregistered securities offerings. Retail users face asymmetric information risks when trading against proprietary desks. Market structure suggests internal market makers create order flow toxicity for retail participants. The 5-year horizon indicates prediction markets may face EIP-4844-style regulatory frameworks separating exchange and market-making functions.

Community Sentiment

Market analysts express concern about transparency. "Exchanges shouldn't trade against their own customers," stated one quantitative researcher on X. Bulls argue prediction markets represent natural evolution toward decentralized finance applications. Bears highlight potential regulatory crackdowns similar to recent actions against prediction platforms in multiple jurisdictions.

Price Prediction / Future Outlook

Bullish Case: Successful market making improves prediction market liquidity, attracting institutional capital. Bitcoin reclaims $92,000 resistance as fear subsides. Regulatory clarity emerges with favorable classification. Prediction market volume grows 300% by 2026.

Bearish Case: Regulatory scrutiny intensifies, forcing prediction market closures. Bitcoin breaks $84,000 support, testing $78,500. Conflict of interest allegations trigger user exodus. Market structure suggests potential 40% correction in prediction market tokens.

FAQs

What is a prediction market? Platforms allowing users to trade contracts based on event outcomes, typically sporting or political events.

Why is in-house market making controversial? Creates potential conflicts when exchanges trade against their own customers with superior information access.

How does this affect Bitcoin price? Indirect correlation through overall crypto sentiment and regulatory implications for the broader industry.

What platforms use similar structures? Kalshi operates Kalshi Trading, while Polymarket maintains affiliated market-making entities.

What are the regulatory risks? Potential classification as unregistered securities or illegal gambling operations depending on jurisdiction.

Source Note: Market data and factual reporting in this article are sourced from original reports. Commentary and analysis provided by CoinMarketBuzz.