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.
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