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Traders search for bearish signals after Bitcoin futures enter backwardation By Cointelegraph

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Traders search for bearish signals after Bitcoin futures enter backwardation

An unusual phenomenon called ‘backwardation’ is taking place in (BTC) futures trading, mainly the June contract, which expires on June 25.

The fixed-month contracts usually trade at a slight premium, indicating that sellers request more money to withhold settlement longer. Futures should also trade at a 5% to 15% annualized premium on healthy markets, in line with the stablecoin lending rate. This situation is known as contango and is not exclusive to crypto markets.

FTX June BTC futures versus Coinbase USD. Source: TradingView
Huobi Sept. BTC futures versus Coinbase USD. Source: TradingView
Bitcoin perpetual futures token-margined funding rate. Source: Bybt