news 
Bitcoin CME Futures Premium Hits 8-Month Low as Demand Slows Down
The price of Bitcoin has been rangebound between $105,000 and $107,700 over the past two weeks. This stagnation is reflected in the decreasing demand for institutional investment products. The Bitcoin CME futures premium has dropped to its lowest level in eight months at 4.3 percent.
This decline highlights the reduced interest from institutions in cash-and-carry trades due to narrowing spreads and lower potential returns. Institutions are repositioning away from arbitrage-led strategies and towards cautious directional exposure, resulting in a compression of CME-to-spot basis for both Bitcoin and Ethereum across regulated platforms.
The recent data suggests that institutional traders are scaling back on capital commitments due to decreased profit-taking opportunities. The perpetual funding rate has dropped near 1 percent while the CME basis yield has fallen below the threshold of 10 percent, indicating reduced interest in low-yield trades.
Bitcoin’s stagnation is a testament to the market sentiment’s shift towards caution and risk aversion. This development may indicate that institutional investors are reevaluating their investment strategies amidst a potential bearish trend for Bitcoin.
Source: coincentral.com
