Bitcoin Quarterly Contracts are Trading $400 Above BTC Spot Markets 14

Bitcoin Quarterly Contracts are Trading $400 Above BTC Spot Markets

In brief:

  • Majority of quarterly contracts on major crypto exchanges are trading higher than spot markets. 
  • The difference is as high as $400 in some instances. 
  • Bitcoin has already hit $12k on some of the quarterly contracts. 
  • The spot market could soon follow a similar trajectory. 

Bitcoin’s momentum in the crypto markets continues to grow as BTC hit a local top of $11,765 on the Binance spot market. The King of Crypto continues on its upward trajectory that could soon find Bitcoin trading above $12,000 in the days to come.

Bitcoin Quarterly Contracts are Trading at a Premium

Further checking the Bitcoin quarterly contracts across major exchanges, there is an instant discrepancy observed in the sense that these contracts are trading at a few hundred dollars above their corresponding spot markets.

In the case of Binance, the Bitcoin quarterly contracts hit a local top of $12,147 only moments ago and are now trading at $11,983. This translates to roughly $370 difference with the spot market value 0f Bitcoin. At the time of writing, Bitcoin is trading at $11,613 on the latter platform.

Similarly, the OKEx Bitcoin quarterly contracts are trading at $11,975 which is significantly higher than the spot market value of $11,619 at the time of writing.

This bullish anomaly in the crypto markets was also captured by the team at Skew a few hours ago via the following tweet.

Bitcoin is Headed to $12k

In an earlier analysis, it was highlighted that Bitcoin could soon be valued at $12,000 based on the number of active BTC addresses. Similarly, all indicators point to 2020 being the last year Bitcoin will ever be valued at below $10,000.

Key to the latter prediction is several factors such as the Fed continually printing fiat, the continual economic impact of COVID19, as well as the bullish news of VISA, Mastercard and Paypal getting into crypto. Furthermore, the use of Metcalfe’s law to model Bitcoin’s price hints at mid-November 2020 probably being the last time Bitcoin will have a chance to be valued below $10,000.