
Bitcoin CME Futures Premium Hits 8-Month Low as Demand Slows Down
The Bitcoin CME futures premium has plummeted to a staggering 4.3%, reaching an eight-month low, signaling a significant decline in institutional interest and reduced arbitrage appeal. This sudden drop signals that institutional investors are no longer eager to participate in the market.
According to recent data, Bitcoin has remained stagnant within the range of $105,000 and $107,700 over the past fortnight, indicating limited upside potential despite increased spot holdings by institutions. The reduced outlook on bullish continuation and diminishing confidence among professional traders are evident in the CME-to-spot basis inversion across regulated platforms.
As per the data, it is apparent that whales have realized significant profits of $641 million while suffering losses of $1.24 billion during the final week of June. Notably, long-term whales recorded a profit of $91 million with minimal losses. This indicates that early Q2 entries are being liquidated as latecomers exit positions under pressure.
Market analysts observe that most CME gaps filled before Bitcoin’s May breakout suggest an increased risk aversion in the market. The narrowing futures premium reflects reduced forward-looking optimism from institutional traders, marking a shift away from speculative appetite and cautious positioning by significant funds.
Source: coincentral.com