Bloomberg indicates a significant drop in Bitcoin arbitrage trading profitability, with returns on the cash-and-carry trade plummeting from 17% last year to just 4.7% currently.
Open interest in Bitcoin futures is declining sharply, largely due to the retreat of major US accounts such as hedge funds, leading to fewer opportunities for arbitrage.
Market maturity has facilitated the growth of directional trading tools, indicating that traders may be pivoting towards more complex strategies in decentralized markets, moving away from high-return methods.
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