Bitcoin Basis Returns to Neutral Territory
CryptoQuant analyst @AxelAdlerJr recently reported that the 7-day simple moving average basis for Bitcoin has returned to a neutral zone. This shift indicates a notable narrowing of the premium between spot and futures prices.
Declining Long Exposure in Derivatives
The analyst highlights that the drop in basis signals reduced demand for long exposure through derivatives. Markets are no longer pricing in aggressive risk-on scenarios, suggesting a shift in investor sentiment towards caution.
Market Entering a Consolidation Phase
With derivative markets failing to drive further price gains, any renewed bullish momentum would require stronger spot buying pressure. This environment often precedes a market consolidation or de-risking phase as traders reassess positioning.