11 Apr 2022

Futures market update: Basis premiums plummeting

Basis premiums continue falling, both on CME and the offshore exchanges. 
Source: Skew
After reaching its highest levels so far in 2022, the basis premium on CME quickly retracted and is now sitting below 2%, among the lower levels seen this year.The basis premium on CME started falling around two weeks ago, one week before it fell on the offshore exchanges.The basis premium on FTX is sitting at its lowest level year-to-date.
Source: Skew
Although we see a high number of long positions being liquidated in the bitcoin perpetuals, the funding rate stays not far from zero.The average funding rate on Binance and Bybit has gone from 0.01% to -0.01%, as the demand for short positions has increased relative to the demand for long positions.The open interest in bitcoin perpetuals has increased from 242,000 BTC on April 5th to 255,000 BTC on April 11th. A high number of long positions have been liquidated, but these liquidations have been offset by a higher number of new positions, with a higher weighting on shorts.
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