• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
bitcoin
Nexo Logo

How Bitcoin Futures Premiums Exhibit Signs Of Market Exhaustion

Best Owie by Best Owie
3 months ago
in Bitcoin
Reading Time: 2 mins read
Advertisement

Bitcoin futures premiums have been consistently trending in the low for some time now. There have been instances where they have broken out of this trend of low performance, but they seem to fall right back in. This does not spell all bad news for the futures premiums as it hints at exhaustion coming. This is attributed to the premiums trading close to yearly lows indicating that it is nearly a point of exhaustion across the board.

Bitcoin Futures Premiums Down

The reason behind the bitcoin futures premiums being down can be attributed to sell-offs that have rocked the digital asset in recent times. Not only have the sell-offs been apparent in investors who are directly exposed to the cryptocurrency but those who have exposure through traditional markets vehicles like ETFs have been selling off too. The most prominent of these have been the high outflows recorded from the ProShares BITO ETF, which is said to be one of the major drivers behind the low basis.

Bitcoin futures premium

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
BTC futures premium down | Source: Arcane Research

Across crypto exchanges FTX and Binance, the bitcoin three-month basis has been trending around 25 to 3%, one of the lowest ever recorded. The last time the basis had touched this low had been in February when bitcoin’s price had been struggling. The value of the digital asset had promptly recovered following a short squeeze that fueled a $6,000 recovery for the cryptocurrency, seeing it touch a peak of $44,000.

Related Reading | Top Ethereum Whales Now Hold Almost $1.5 Billion Worth Of SHIB

However, after this has come more low momentum on the futures premium basis front. It is now trading even lower than it did in February, lagging behind its offshore venue peers at a premium of 1.34%. This is seen as a direct indicator of how investors are feeling toward the digital asset. Since Bitcoin had lost its footing above $40,000, sentiment has turned generally bearish and this has translated to muted futures premiums at rarely seen low levels.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Bitcoin price chart from TradingView.com

BTC trading north of $41,000 | Source: BTCUSD on TradingView.com

A light at the end of the tunnel looks to be coming up though given the history of performance that has followed low futures premiums such as this. They are historically known to be short-lived, usually followed by a surge in the price of the digital asset, as was recorded in late February.

Related Reading | Could Netflix Tumble Down The Crypto Market?

If this is the case and bitcoin follows historical patterns, then another $6,000 rally would put the digital asset at the $47,000 mark. And if sell-off exhaustion does kick in, sentiment could quickly turn back into the positive, leading to more surge in the price of the cryptocurrency.

Featured image from MARCA, chart from TradingView.com
Tags: bitcoinBitcoin futures premiumbtcbtucsd
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Best Owie

Best Owie

Related Posts

bitcoin

Bitcoin Sets Record For Worst Quarter Since 2011, What’s Next?

5 hours ago
bitcoin ETF

SEC Still Against Spot-based Bitcoin ETFs. Is There A Light At The End Of The Tunnel?

6 hours ago
Worst Quarterly Bitcoin Crash In A Decade Closes Above Key Support

Worst Quarterly Bitcoin Crash In A Decade Closes Above Key Support

9 hours ago
bitcoin vs altcoins

Altcoins Take The Lead As Bitcoin Struggles To Hold Above $20,000

12 hours ago
bitcoin

Bitcoin Approaches 2018 Like Drawdown, Why $20,000 Is A Crucial Level

15 hours ago
ATOM

ATOM Rises To Multi-Week High, Daily RSI Shows Bullish Pattern

21 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

LBank Exchange Will List IX Token (IXT) on July 7, 2022

July 6, 2022

Has Bitcoin (BTC) Finally Died? Are Financial Management Crypto Like Gnox (GNOX) The Future Of The Industry?

July 6, 2022

LBank Weekly Listing Report, 4th July 2022

July 6, 2022

Zenith’s token ZNT lists on Huobi Global, strengthening its presence among lending protocols

July 5, 2022

Chimeras Launches Open Alpha Version of Metaverse Game

July 5, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.