Bitcoin futures enter backwardation for the first time in a year

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The bottom isn’t in yet! noshitcoins says derivatives data show Bitcoin futures in backwardation for the first time in a year, while other analysts warn that a bevy of bearish threats could push BTC price lower.

) month-to-date chart is very bearish, and the sub-$18,000 level seen over the weekend was the lowest price seen since December 2020. Bulls' current hope depends on turning $20,000 to support, but derivatives metrics tell a completely different story as professional traders are still extremely skeptical.

Furthermore, according to analysts at global investment bank JPMorgan Chase, the record-high total stablecoin market share within crypto is “pointing to oversold conditions andfrom here.” According to the analysts, the lower percentage of stablecoins in the total crypto market capitalization is associated with a limited crypto potential.

These fixed-month contracts usually trade at a slight premium to spot markets because investors demand more money to withhold the settlement. This situation is not exclusive to crypto markets. Consequently, futures should trade at a 5%-to-12% annualized premium in healthy markets.Bitcoin's futures premium failed to break above the 5% neutral threshold, while the Bitcoin price firmly held the $29,000 support until June 11.

 

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