Reported 13 days ago
The recent surge in Bitcoin prices, spurred by geopolitical factors including Donald Trump's presidential win, has revived a popular trading strategy among crypto hedge funds known as the basis trade. This involves buying Bitcoin at spot prices while selling long-dated futures, amplifying investor demand and pushing prices higher. With Bitcoin nearing a record $85,000, institutions are increasingly leveraging futures and options markets, driving the basis on CME contracts to approximately 18%. Predictions suggest a potential rise to $100,000 by year-end, reflecting growing confidence in the cryptocurrency's future.
Source: YAHOO