Bitcoin futures listed on the Chicago Mercantile Exchange (CME) have slipped into ‘backwardation,’ a market condition that represents declining institutional appetite for the cryptocurrency.Data tracked by Skew shows backwardation represented by futures drawing lower prices than the spot prices emerged on Monday with the one-month contract slipping to an annualized discount of … [Read more...] about Bitcoin CME Futures Slip Into ‘Backwardation’ as Bearish Sentiment Grips Market
backwardation
Backwardation in Bitcoin futures contracts shows pro investors lack confidence
Bitcoin (BTC) might have tested the $40,000 support in mid-July, but according to various derivatives metrics, there has not been a significant change in investor optimism. This situation either means that price is not what they are looking to mark the end of the current bear market, or that most traders are still underwater at $40,000.One of the best measures of optimism is … [Read more...] about Backwardation in Bitcoin futures contracts shows pro investors lack confidence
Traders search for bearish signals after Bitcoin futures enter backwardation
An unusual phenomenon called 'backwardation' is taking place in Bitcoin (BTC) futures trading, mainly the June contract, which expires on June 25. The fixed-month contracts usually trade at a slight premium, indicating that sellers request more money to withhold settlement longer. Futures should also trade at a 5% to 15% annualized premium on healthy markets, in line with the … [Read more...] about Traders search for bearish signals after Bitcoin futures enter backwardation