Bitcoin’s futures premium fell to a 5-month low. Are lower prices in store for BTC?
Bitcoin price revisits recent lows as the BTC futures premium falls to a 5-month low. Is the bull market over?of a spot BTC exchange-traded fund in Hong Kong. Despite expectations of $140 million in demand, the total trading volume, including Ether ETFs, on the opening day was just $12.4 million. As a result, the premium on Bitcoin futures dropped to its lowest level in five months, signaling a possible bearish outlook.
Previously, the Hong Kong exchange had listed cryptocurrency ETFs based on futures contracts, attracting $529 million in net inflows in the first quarter of 2024. Therefore, the weak debut of the spot instrument on April 30 was unexpectedly disappointing for many. However, some analysts, including Bloomberg’s Eric Balchunas, suggest that poor timing might have contributed to the low trading volumes.
The S&P 500 is set to record its first negative monthly performance in six months this April, and yields on U.S. 5-year Treasury notes increased from 4.2% to 4.7% over the month, reflecting higher return demands from investors. Traders often exit fixed-income positions if they fear rising inflation or expect continued growth in U.S. debt. As the government is compelled to increase market liquidity, the value of its bonds decreases.
This shift indicates that investors were initially optimistic about the Hong Kong spot ETF launch but quickly adjusted their expectations after seeing the disappointing trading volumes. Consequently, traders should not be overly alarmed by the decline in the Bitcoin futures premium. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
France Dernières Nouvelles, France Actualités
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