IntoTheBlock analysis company released a tweet saying that the price of Bitcoin futures contract in December was lower than that of BTC spot market.
According to the tweet, although this shows that traders have a large number of selling theme activities, there are still arbitrage opportunities.
In a short tweet, the authoritative expert of IntoTheBlock explained that the above phenomenon of Bitcoin futures is called "trafficking", which shows that in the past two weeks, traders have been selling a lot of Bitcoin because of fear of falling prices.
However, according to another tweet, this kind of position reduction brings hedging arbitrage probability of buying stock index futures contracts and selling cash. IntoTheBlock said that in this way, traders can profit from the price difference here.
The reader is reminded that buying and selling digital currency is likely to be very risky and may lose money, especially for traders who lack experience in sales market.
IntoTheBlock said that when the stock index futures contract entered the position reduction period, this generally coincided with the time when the market hit the bottom. The same thing happened to Bitcoin in the spring of 2021 and 2020.
The high liquidity trap may also be a sign that Bitcoin has hit the bottom. Therefore, IntoTheBlock suspects that the flagship digital currency has finally hit the bottom in this bearish stock market.
