Bitcoin Futures and Spot Price Spread Turns Negative, Indicating Market Shift

According to Foresight News, CryptoQuant analyst Axel Adler Jr has noted a significant change in the Bitcoin market dynamics. He tweeted that the spread between Bitcoin futures and spot prices has recently fallen into negative territory. This shift suggests that long leverage in the futures market has been partially cleared, and the risk premium on perpetual contracts has nearly vanished. Currently, the market is more influenced by spot ETFs rather than being dominated by futures. Adler Jr emphasized that as long as the spread between futures and spot prices remains close to zero, it indicates a healthy deleveraging process. However, if the seven-day spread continues to stay below 0% during price declines, it could signal aggressive bearish sentiment in the derivatives market.