Research says bitcoin derivatives markets are “healthier” in the first quarter

Bitcoin (BTC) has been sorting out classically leveraged traders this week, but new data suggests that the market is generally healthier than it was at the beginning of the year.

Highlights Data analytics firm Arcane Research revealed in its latest weekly newsletter what turned out to be the right futures markets in the fourth quarter of 2021.

The “healthier” market keeps the upward trend sustainable

With BTC’s abrupt price correction on Wednesday causing maximum pain to leveraged long-term traders, sentiment began to fluctuate in the face of market strength.

This is unfounded, the figures show, as the derivatives markets are structurally much firmer than they were in the initial phase of up to $ 64,900 in April.

Arcane focuses on what is known as the futures basis – the difference between the spot BTC price and the futures price on different exchanges.

January through April 2021 saw strong three-month gains that peaked at Binance and FTX at 46% and 45%, respectively, from their all-time highs in April.

In contrast, CME BTC futures were trading at a premium of just 12% at the time.

Now, not only are all three providers practically the same, but the base is significantly lower – even if Bitcoin outperforms April’s performance.

Currently, Binance, FTX, and CME have 14%, 13% and 8% premiums, respectively.

“The base is much lower now than it was when BTC was trading above $ 60,000 in April – suggesting a healthier market,” Arcane added on Twitter.

Remaining days until the decision on the first Bitcoin ETF spot

As Cointelegraph reported, the pace of change between institutions in terms of Bitcoin exposure is becoming increasingly evident.

Related: The world’s largest bitcoin fund could turn into an ETF in July as GBTC hits nearly $ 40 billion in AUM

Gold, which has long had a lackluster price development compared to BTC, is rapidly losing value as investors opt for the cryptocurrency.

Grayscale, the operator of the largest Bitcoin fund, Grayscale Bitcoin Trust (GBTC), has now surpassed the assets under management of the world’s largest gold fund.

Bitcoin futures-based exchange traded funds (ETFs) are also setting records, while potential operator Bitwise announced this week that it would swap its plans for a spot product.

US regulators will make decisions on VanEck’s first spot ETF in November.