Bitcoin futures are showing signs of bullishness that were historically indicative. Analysts turn their attention to Bitcoin futures basis—a metric representing the differential between the futures price of Bitcoin and its spot price.
This basis is at an unprecedented level since Bitcoin. all-time high of $69,000 The next November is 2021.
Bitcoin Futures: Bullish Signals
Deribit’s Chief Commercial Officer, Luuk Strijers, has highlighted Bitcoin Futures Basis: The rate of growth is 18% to 25 % annually. This rate is similar to the conditions on the market in 2021.
Strijers said that this increased basis was not a mere number, but an opportunity to make money for traders of derivatives.
Traders can earn a profit by buying Bitcoin on the spot market, and then selling it at a higher price in futures contracts. “dollar gain” This will be realized at the expiration of the contract, regardless of Bitcoin’s volatility.
Strijers noted further that this strategy was particularly attractive in the current environment, fuelled by the new investment influx following the approval Bitcoin ETFs as well as the anticipation around the Bitcoin halving.
It is important to note that the significance of the increased futures basis goes beyond derivative trading. This reflects the broader optimism in the market. “bolstered” By recent regulatory approvals, and macroeconomic influences on cryptocurrency.
Bitcoin futures are more expensive than spot prices, which indicates a positive market outlook. This is due to the expectation of increased investment and the impact from the Bitcoin halving.
This is because historically, bullish basis rates for futures contracts have been associated with times of high inflation. substantial price appreciation.
Market Sentiment & Halving cycles
Bitcoin is currently a cryptocurrency. market performance The exhibits are a bearish trajectoryAnalysts warn that a price drop of 3,9% to $68,203 should not be interpreted as a warning. Rekt Capital has a reputation as a leader in the field of crypto-analysis. views Recent price fluctuations as an example “positive adjustment” Before the highly anticipated Bitcoin halving scheduled for April.
The halving of block rewards for miners has historically led to significant price increases due to supply restrictions.
Rekt Capital’s analysis is similar current market movements Previous halving cycles have shown similar patterns.
According to the analyst, despite the swift pace of these cycles, they exhibit a consistent sequence of a pre-halving rally followed by a retracement phase—both of which align with Bitcoin’s current trajectory. According to this cyclical viewpoint, the recent dip in Bitcoin is just a temporary setback. next After halving, the bullish phase begins.
Though there are signs of BTC experiencing an Accelerated Cycle…
The past continues to repeat itself, despite everything$BTC The riots broke out in a “Pre-Halving Rally” right on schedule
Here we are. #Bitcoin Transitioning to its “Pre-Halving Retrace” right on schedule#Crypto https://t.co/Egqxs9ritl pic.twitter.com/lj0IdQtBEE
— Rekt Capital (@rektcapital) March 15, 2024
Chart by TradingView, Featured Image from Unsplash
Disclaimer article It is intended solely for educational use. NewsBTC does not give its opinion on the best way to invest, whether you should buy, hold or sell any investment. Investing is risky and comes with risks. We recommend that you do your research. own Do your research before you make any investments. You are solely responsible for the use of information on this site. own risk.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: www.newsbtc.com