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Backwardation in Bitcoin futures contracts shows pro investors lack confidence

Published 07/06/2021, 12:37 PM
Updated 07/06/2021, 02:20 PM
Backwardation in Bitcoin futures contracts shows pro investors lack confidence
BTC/USD
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Bitcoin (BTC) might have tested the $40,000 support in mid-July, but according to various derivatives metrics, there has not been a significant change in investor optimism.

This situation either means that price is not what they are looking for to mark the end of the current bear market or that most traders are still underwater at $40,000.

Huobi 1-month Bitcoin futures basis. Source: Skew
Bitcoin market cap (above) and aggregative trading volume, in billions (USD). Source: TradingView
Deribit Bitcoin options 25% delta skew. Source: laevitas.ch

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