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Bitcoin CME Futures Premium Hits 8-Month Low as Demand Slows Down
The latest data suggests that the Bitcoin CME futures premium has fallen to a staggering 8-month low, with the current figure at an alarming 4.3%. This dramatic decline indicates a substantial decrease in institutional demand and diminishing arbitrage opportunities.
Bitcoin’s recent trading activity has been rather stagnant, with prices remaining range-bound between $105,000 and $107,700 over the past two weeks. The perpetual funding rates have plummeted to near 1%, while CME basis yields have fallen below the crucial 10% threshold. This significant shift in the market dynamics is a clear indication that hedge funds are reevaluating their positions and reassessing their risk exposure.
The data indicates that institutional investors have grown increasingly cautious, leading to a substantial decline in cash-and-carry trades. With fewer arbitrage opportunities available, institutions are now opting for more defensive positioning strategies. The futures curve has flattened as a result, which aligns with the current price action exhibiting limited upside momentum.
As Bitcoin’s price continues its consolidation phase, market analysts are warning of speculative fatigue and cautious positioning from significant funds. The combination of these factors is creating a challenging environment for those seeking to generate returns through yield-generating trades.
Source: coincentral.com
