Currently, Binance’s perpetual futures for Bitcoin (BTC) are trading at a discount of 40-50 USD below spot prices, suggesting unusual selling pressure. The market sentiment among derivatives traders is cautious, despite bullish movements, indicating a potential short squeeze.
Cautious trading and institutional hedging strategies that include shorting futures may compress perpetual prices. If the futures premium resurfaces, it could lead to rapid price movements, presenting a risky position for short-sellers against strong long-term holders.
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