Bitcoin (BTC) shook classic-style leveraged traders this week, but new data suggests the market is vastly healthier than at the beginning of the year.
Highlighting the findings of its latest weekly newsletter, the data analytics firm Arcane Research showed how the futures markets have lined up in the fourth quarter of 2021.
A “healthier” market maintains a sustainable bullish bias
With a sudden correction in the price of BTC causing the most pain for leveraged long traders on Wednesday, sentiment has started to waver on market strength.
This is unjustified, the figures suggest, since derivatives markets are structurally much stronger than they were during the initial run to $ 64,900 in April.
Arcane focused on the so-called base of futures, that is, the difference between the spot price of Bitcoin and the futures price on various exchanges.
From January to April 2021 there was a sharp rise in the three-month basis, which peaked at 46% and 45% for Binance and FTX respectively at April’s all-time high for the BTC / USD pair.
Conversely, CME’s Bitcoin futures were trading at a 12% premium at the time.
Now, however, not only are the three providers practically even, but the basis is much lower, even as Bitcoin outperforms its April performance.
Currently, Binance, FTX and CME have premiums of 14%, 13% and 8%, respectively.
“The base is much lower now than when BTC was trading above $ 60,000 in April, indicating a healthier market.”Arcane added in comments on Twitter.
Days to go to first Bitcoin spot ETF decision
As Cointelegraph reported, the pace of change between institutions when it comes to exposure to Bitcoin is increasingly revealing.
Gold, which has had a mediocre price performance for an extended period compared to BTC, is losing out fast as investors turn to cryptocurrency.
Grayscale, operator of the largest Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), has already exceeded the assets under management of the world’s largest gold fund.
Bitcoin-based exchange-traded funds (ETFs) are also breaking recordsWhile potential operator Bitwise has said this week that it will swap its plans for a cash-based product.
US regulators must rule on VanEck’s first spot ETF on Nov. 14.
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