CME Bitcoin Futures See Record Discount Amid 'Very Bearish Sentiment'
Derivatives traders have become significantly more conservative this month compared to the latest data news.
Market news
Bitcoin (BTC) futures begin to see record discounts as sentiment among derivatives traders deteriorates.
In its latest dedicated report released on August 23, analytics firm Arcane Research painted a disturbing picture of BTC futures participant sentiment.
Futures Basis Revisits June LowsAfter an initial shock during the BTC price decline in June, which has since held as a macroeconomic floor, Bitcoin derivatives have not been the same.
After an initial bounce, the stats tend to drop and this month the records are tough.
The futures basis – the difference between futures prices and the spot price of Bitcoin – has already returned to lows seen only during the June decline to $17,600. The move came thanks to last week's sudden sell off in BTC/USD, which led to multiple visits below the $21,000 mark.
“Overall, the current futures basis is at levels that were only briefly seen during the June crash,” Arcane confirmed, adding that the data “indicates very bearish sentiment. among futures traders".
More discouraging numbers come from CME Group's first month futures price.
Breaking past lows of July 2021, these contracts are now trading at their biggest ever discount to spot price.
“Overall, CME futures have tended to trade at a discount over the past couple of months, but experienced a strong short-lived rally during market strength early in the month. 'August,' the report continues.
Bitcoin CME forward annualized on a rolling basis of a graphical month (screenshot). Source: Arcane ResearchArcane argued that "structural effects" within the derivatives market could go to some extent...
Derivatives traders have become significantly more conservative this month compared to the latest data news.
Market news
Bitcoin (BTC) futures begin to see record discounts as sentiment among derivatives traders deteriorates.
In its latest dedicated report released on August 23, analytics firm Arcane Research painted a disturbing picture of BTC futures participant sentiment.
Futures Basis Revisits June LowsAfter an initial shock during the BTC price decline in June, which has since held as a macroeconomic floor, Bitcoin derivatives have not been the same.
After an initial bounce, the stats tend to drop and this month the records are tough.
The futures basis – the difference between futures prices and the spot price of Bitcoin – has already returned to lows seen only during the June decline to $17,600. The move came thanks to last week's sudden sell off in BTC/USD, which led to multiple visits below the $21,000 mark.
“Overall, the current futures basis is at levels that were only briefly seen during the June crash,” Arcane confirmed, adding that the data “indicates very bearish sentiment. among futures traders".
More discouraging numbers come from CME Group's first month futures price.
Breaking past lows of July 2021, these contracts are now trading at their biggest ever discount to spot price.
“Overall, CME futures have tended to trade at a discount over the past couple of months, but experienced a strong short-lived rally during market strength early in the month. 'August,' the report continues.
Bitcoin CME forward annualized on a rolling basis of a graphical month (screenshot). Source: Arcane ResearchArcane argued that "structural effects" within the derivatives market could go to some extent...
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