Pressure From Futures Selling Alleviates

One of the key themes we've been monitoring in the crypto ecosystem is the movement to a new era dominated by an increasing number of derivative vehicles at investors' disposal.

In previous Bitcoin cycles, investors primarily moved to cash through selling spot.

Now, with a liquid futures market, savvy traders have been hedging their positions (today's equivalent of going to cash) by shorting calendar futures.

This constant selling pressure in calendar futures has driven the term structure lower over the last few months and is a reliable metric for both long and short time frame analysis.