{"id":10739,"date":"2022-03-11T02:30:00","date_gmt":"2022-03-11T02:30:00","guid":{"rendered":"http:\/\/ci029bccf5f0002795"},"modified":"2022-03-11T02:30:00","modified_gmt":"2022-03-11T02:30:00","slug":"bitcoin-derivatives-shows-macroeconomic-uncertainty","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/bitcoin-derivatives-shows-macroeconomic-uncertainty","title":{"rendered":"Bitcoin Derivatives Market Reflects Macroeconomic Uncertainty"},"content":{"rendered":"
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The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, <\/em>subscribe now<\/a><\/a><\/em>.<\/em><\/strong><\/p>\n

Today we\u2019ll cover the latest in the bitcoin derivatives market. At the time of writing, the price of bitcoin is up approximately 8% over the previous day\u2019s time. When analyzing the derivatives data, the previous two months have brought about a regime of periodically negative funding, showing the caution shown by market participants during a period of macroeconomic uncertainty.<\/p>\n

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Shown below is the funding rates annualized, with approximately 10% annualized being the market neutral rate to go long. As we stand today, funding rate sentiment emphasizes a skewed, below-neutral sentiment to the downside since late January.<\/p>\n

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For additional context, here is the daily average of perpetual swap funding rates since the start of 2020:<\/p>\n

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It is noteworthy that previous regimes of derivative bearishness saw funding rates go much deeper into negative territory, which could speak to the maturation and institutionalization of the asset class. <\/p>\n

Similarly, quarterly futures annualized basis continues to fall, while price notably caught a bid.<\/p>\n

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$BTC<\/a> 3-month annualized futures basis continues to fall while price has caught a bid. <\/p>\n

Since the summer of 2021, the futures basis and price have been tightly coordinated. <\/p>\n

A rather noteworthy divergence from derivative speculation and price action. pic.twitter.com\/uZLWKCUT1N<\/a><\/p>\n

— Dylan LeClair \ud83d\udfe0 (@DylanLeClair_) March 9, 2022<\/a><\/p><\/blockquote>\n