IntoTheBlock: Hedge Funds' Arbitrage Trading Positions May Have Caused BTC to Fall in Q1
Hedge funds' carry trade positions could push the market higher in the fourth quarter and could lead to a market decline in the first quarter of 2024, IntoTheBlock said on the X platform. Just one month prior to the ETF's approval, bitcoin futures were trading at a premium (positive spread) of more than 2% relative to the spot price; by going long spot and short futures, the fund would execute carry trades to profit from the price difference, which could be as much as 25% to 30% annualised; as the ETF approval window approached, the futures premium quickly shifted to a discount (led by BitMEX on 6 January), suggesting that the company began to take profits, causing prices to fall.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Euro: Positive outlook hinges on 1.1280 against US Dollar - UOB
USD/JPY Price Forecast: Remains close to 20-day EMA
OpenAI president confirms IPO in 2027: enterprise clients have become the main source of revenue, but funding target has shrunk from 30 billions to 20 billions
OpenAI President Brockman stated that enterprise sales have contributed the majority of the company's revenue, and the company will be ready for an IPO by 2027. OpenAI is accelerating fundraising and competing with Anthropic, which is aiming to go public by the end of the year.
Former Citi executive Klein establishes another SPAC; Churchill Capital XIV (CXIVU.US) plans to raise up to $300 million in US IPO
Churchill Capital XIV filed an application with the SEC on Wednesday, seeking to raise up to $300 million through an initial public offering (IPO).
Crypto prices
More
