Polymarket has introduced a new feature on its US application called Bitcoin Up or Down. The service allows users to place wagers on whether the price of Bitcoin will be higher or lower than a reference point at the end of 15-minute intervals. These markets operate continuously, 24 hours a day, seven days a week.
The platform utilizes decentralized price feeds from Chainlink to determine the outcome of each contract. This approach is designed to mitigate the risk of price manipulation. Users benefit from automated settlement, though they also have the option to close their positions early to secure profits or limit potential losses.
This launch marks a shift for Polymarket, which previously focused on long-term event contracts such as election results or geopolitical developments. The new product places the platform in direct competition with crypto derivatives exchanges. However, Polymarket maintains that these are event contracts rather than derivatives.
The company operates under the oversight of the CFTC, which is currently reviewing the nature of these short-term contracts. Regulators are evaluating whether these instruments should be classified differently. The platform previously faced regulatory action in 2022, which led to a temporary suspension of its US operations.
The introduction of high-frequency trading tools may draw increased scrutiny from both federal and state regulators. Competitors such as Kalshi are monitoring the situation closely. Should the product prove successful without regulatory intervention, similar offerings from other platforms are expected to emerge.
