Crypto Slides as Speculation Reshapes US Markets

Bitcoin and ether hit multi-month lows as Zerodha's Nithin Kamath says speculative trading has drawn more people into US markets.

Updated on Nov. 9, 2026 in Investing

Crypto Slides as Speculation Reshapes US Markets

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Zerodha CEO Nithin Kamath said speculative trading has brought more people into US markets since COVID-19, through crypto, derivatives, NFTs and prediction markets. Bitcoin fell more than 2% to $73,708 and ether fell about 5% to $2,223, their lowest levels since August.

Why it matters

Investors worried a Democratic-controlled Congress will toughen crypto regulation, adding pressure on digital asset prices. Growth in speculative products is also changing how brokers earn revenue.

Bitcoin fell more than 2% to $73,708 and ether fell about 5% to $2,223, both their lowest since August. Prediction market trading volume has grown more than 20-fold since October 2024, with about 99% of Kalshi parlay volume coming from sports.

The players

Nithin Kamath

Nithin Kamath is the CEO of Zerodha, one of India's largest discount brokerages, and is known for commentary on retail trading and market structure.

Robinhood

Robinhood is a US-based online brokerage that popularized commission-free trading and has expanded into crypto and prediction markets.

The details

Kamath posted his comments on X, describing how the US market has changed rapidly since COVID-19. Crypto futures and ETFs are now widely available, and brokers such as Robinhood draw a large share of revenue from prediction markets.

- 2020: COVID-19 pandemic; last major US market innovation before the recent shift was 0-day options.
- October 2024: Prediction market volume growth of more than 20-fold begins.
- November 9, 2026: Kamath's comments and the crypto price drop are reported.

Market Dynamics

The rapid growth of prediction markets on platforms like Kalshi, where about 99% of parlay volume comes from sports, marks a shift in how US retail speculation is structured. Crypto's move into futures and ETFs has placed digital assets alongside traditional instruments as regulators weigh new rules.

Retail investors holding bitcoin or ether face near-term price exposure as the assets trade at their lowest levels since August. Investors should weigh how potential congressional crypto rules could affect their holdings and whether speculative products fit their risk tolerance.

The takeaway

Speculative products have become a larger share of US retail trading, so investors should check how exposure to crypto and prediction markets fits their overall savings plan. Reviewing position sizes before regulatory changes take effect can help limit unexpected losses.