Uncertainty prevails as December 2021 Bitcoin futures show an inverted pattern

Uncertainty prevails as December 2021 Bitcoin futures show an inverted pattern


It’s not yet known whether Binance’s recent news of  being temporarily suspended from the U.K.’s financial system is the main driver behind today’s Bitcoin (BTC) price drop. As Cointelegraph reported, the exchange sent emails to affected customers but has not given any details.

Regardless of the reason behind the price weakness, derivatives contracts started to display some oddities, and this could be a troubling sign.

Bitcoin quarterly futures are the preferred instruments of whales and arbitrage desks. Although it might seem complicated for retail traders due to their settlement date and price difference from spot markets, their most significant advantage is the lack of a fluctuating funding rate.

Trending: BREAKING: House Republicans Move to “Vacate” Pelosi’s Chair, End “Authoritarian Reign”

When traders opt for perpetual contracts (inverse swaps), there is a fee usually charged every 8-hours that will change depending on which side demands more leverage. On the other hand, fixed-date expiry contracts typically trade at a premium from regular spot market exchanges.

This effect occurs as sellers are postponing settlement, therefore requesting compensation for this

Continue reading

You Might Like

Daily Truth Report • DailyTruthReport.com
Thanks for sharing!
Send this to a friend