Bitcoin futures premium hits 18-month high — Time to flip bullish?

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Bitcoin futures' premium is at 18-month highs, but where's the euphoria?

? Of course, one must take a potential economic recession and the increasing regulatory clampdown measures around the world into account first.

Luckily, Bitcoin futures' contract premiums can provide some clues for traders about the market's next move for reasons discussed below — as well as the costs of hedging using BTC options.are popular among whales and arbitrage desks. However, these fixed-month contracts typically trade at a slight premium to spot markets, indicating that sellers are asking for more money to delay settlement.

As a result, BTC futures contracts in healthy markets should trade at a 5% to 10% annualized premium — a situation known as contango, which is not unique to crypto markets.The demand for leveraged BTC longs has significantly increased over the past week as the futures contract premium jumped to 6.4% on July 3 from 3.2% one week prior. Besides reaching the highest level in 18 months, the metric has finally moved to a neutral-to-bullish area.

 

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