Recent report shows that situation with Bitcoin futures indicates large selling activity taking place
IntoTheBlock analytics company has tweeted that the December bitcoin futures contracts are moving lower than the BTC spot trading price.
Even though it indicates large selling activity by traders, there is still an arbitrage opportunity, the tweet says.
bitcoin futures in backwardation
In a short tweet thread, the experts at IntoTheBlock point out that the situation with bitcoin futures mentioned above is called a lag, and indicates that over the past two weeks, traders have been heavily dumping BTC in fear of lower price movement. are doing.
However, as per another tweet, this backwardation provides an arbitrage possibility of buying the futures contract and selling the spot. This way, IntoTheBlock says, traders could profit from the difference here.
U.Today reminds readers that trading cryptocurrencies can be extremely risky, and it is possible to lose money, especially for traders who are inexperienced with this market.
Has Bitcoin reached the bottom?
IntoTheBlock stated that when futures contracts go into backwardation, this usually matches the times when markets hit bottom. The same thing happened with Bitcoin back in the spring of 2021 and 2020.
Extremely negative rates can also be a sign that bitcoin is bottoming out, so IntoTheBlock wonders whether the leading crypto has finally bottomed out in this bear market.
