Ether traders might have a few reasons to panic after today’s 13% drop down to $4,100.
12, the United States Securities and Exchange Commission officially denied VanEck’s spot Bitcoin exchange-traded fund application request.
Ether’s quarterly futures are the preferred instruments of whales and arbitrage desks.
The three-month futures typically trade with a 5% to 15% annualized premium, which is deemed an opportunity cost for arbitrage trading.
21 caused the basis rate to touch the 20% level, which marks some excessive leverage from buyers.
Although the basis rate remains neutral-to-bullish, it signals that some buyers’ excess heat was terminated, which is essentially a healthy cleansing.