Bitcoin Traders Seek Further Upside Exposure, Pushing Futures Premiums Higher

Bitcoin Traders Seek Further Upside Exposure, Pushing Futures Premiums Higher

Bullish bitcoin (BTC) sentiment is rising because the cryptocurrency superior to a fresh all-time high above $63,000 on Tuesday. The annualized premium between the BTC futures worth and spot worth is now approaching 50% on 3-month contracts. This signifies excessive willingness of merchants to acquire upside publicity in BTC futures, based on a new report by Arcane Research, a cryptocurrency analysis agency.

Funding charges have additionally skyrocketed within the perpetual swaps marketplace for bitcoin, which signifies excessive upside leverage.

“Most perpetuals are presently buying and selling at a major premium to identify,” wrote Arcane. “Leverage is an important ingredient within the recipe for liquidations, and we might not be shocked to see an inflow in lengthy liquidations quickly.”

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