Bitcoin Futures CME Premiums Are Declining, According to a Report
A recent report by Arcane Research has revealed that the premiums for the CME Bitcoin Futures contracts traded on a monthly, quarterly and half-yearly basis are declining relative to their week-on-week average.
The contracts which will be expiring at the end of March have increased by 0.60% on the CME and 1.19% premium on unregulated exchanges. June 2020 contracts have dropped by 2.71% and 3.29% premium on CME and other exchanges respectively.
This is surprising, considering the fact that the June contracts will be after the Bitcoin block halving. The event is slated to see a price increase, due to the block rewards reduction.
According to the report, the premiums on the quarterly contracts have seen a massive drop. It noted that, just 2 weeks ago, the premium rates for March were as high as that of June today. However, the rates for March has seen a major pullback lately.
Since Bitcoin reached its 2020 high on February 14, the annualized premiums which were over 25% began to decline, on both regulated and unregulated exchanges. While the price dropped to the $8,600 range, the premium rates for March 2020 contracts reached 7%, lower than the previous average.
The report noted that, “The recent price pullback has really hit the premium rates, and only time will tell if this is an over reaction or if traders truly are less bullish on the upcoming months.”
Featured image courtesy of Shutterstock. Source: Cryptopress.