Bitcoin (BTC) futures indicate a weakness in the market’s demand for cryptocurrencies. The Bitcoin futures contracts expiring on Friday fell to a discount level.

Trading below the index price on the Deribit exchange, the futures contracts fell to a discount level. This is seen as a sign of decreasing risk appetite and selling pressure in the cryptocurrency market.

FUTURES TRADING BELOW SPOT PRICE
Andrew Melville, a research analyst at Block Scholes, stated to CoinDesk, “Futures prices are trading below spot prices, which we consider as a significant indicator of a downward trend.” According to Melville, the short-term returns on Bitcoin futures fell to negative levels for the first time in over a year. This signifies weakening expectations in the market and raised concerns about a potential future drop in BTC price.

DECLINING DEMAND FOR BITCOIN FUTURES ON DERIBIT
Deribit is known as one of the world’s largest cryptocurrency options exchanges. The platform holds a critical market position for professional investors who want to use synthetic strategies that combine futures, options, and spot markets. However, the recent decrease in demand for Bitcoin has resulted in futures prices falling below the spot market.

In cryptocurrency markets, futures trading at a lower level than the spot price is often an indicator of expected decline. The tendency of investors to avoid risk has raised the possibility of increased price volatility. This situation implies that Bitcoin may face more selling pressure in the short term.