Bitcoin Futures Turn Negative Amid Market Volatility
Bitcoin futures basis has turned negative for the first time since August, signaling bearish sentiment among traders.
DeepSeek’s recent market disruption caused traders to de-risk, leading to significant volatility in the crypto space.
Nvidia Crash Sends Ripple Effects Through Crypto Markets
The Nvidia stock crash triggered widespread de-risking, with CME traders responding swiftly.
Vetle Lunde, K33’s Head of Research, noted on X.com that the bitcoin futures basis entered negative territory. This marks the first time since August 2023.
Notional open interest saw its largest daily drop, plummeting by 17,225 bitcoin.
What Is Bitcoin Futures Basis?
Bitcoin futures basis is the difference between futures contract prices and the current bitcoin spot price.
A negative futures basis reflects bearish sentiment. It indicates traders are selling futures below spot prices amid risk aversion.
Bitcoin Stabilizes Above $102,000 After Volatility
Bitcoin briefly fell below $98,000 but has since rebounded, stabilizing above $102,000.
Recent volatility stems from broader market uncertainties rather than crypto-specific issues.
Factors Driving Market Uncertainty
Several factors have added pressure to risk assets, including:
- U.S. Federal Reserve’s unclear interest rate path.
- Speculation surrounding Trump-era tariffs.
- DeepSeek’s disruptive AI model announcement.
DeepSeek’s AI model reportedly rivals U.S. counterparts at a lower cost, shaking tech and crypto markets.
Tech Earnings Could Amplify Volatility
This week’s earnings reports from major tech companies, including Meta, Microsoft, and Tesla, could further impact markets.
Analysts expect AI competition and corporate results to increase pressure on risk-on assets like bitcoin.
QCP Capital analysts warn of downside risks due to ongoing uncertainties.
U.S. Equities Show Signs of Resilience
Despite the turmoil, U.S. equity futures are stabilizing. S&P 500 futures rose 0.12%, and Nasdaq futures climbed 0.24%.
Optimism for Nvidia remains strong, as AI advancements may boost long-term chip demand, according to the Kobeissi newsletter.
