Cryptocurrency12 minutes ago (Jun 17, 2021 10:40PM ET)
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 stablecoin lending rate. This situation is known as contango and is not exclusive to crypto markets.FTX June BTC futures versus Coinbase USD. Source: TradingViewHuobi Sept. BTC futures versus Coinbase USD. Source: TradingViewBitcoin perpetual futures token-margined funding rate. Source: Bybt