[Analysis] "Bitcoin, CME futures premium decline... Institutional buying weakens"

It has been observed that the Bitcoin (BTC) futures premium on the global derivatives platform, Chicago Mercantile Exchange (CME), has plummeted. Accordingly, there is analysis that institutional interest in Bitcoin is weakening.

According to crypto media outlet CoinDesk on the 2nd (Korea time), 10x Research reported, "The annual premium for 3-month CME Bitcoin futures has dropped from 10% earlier this year to 4.3% currently," and added, "This is the lowest level since 2023."

The report further stated, "Even though Bitcoin price remains above $100,000, the basis (difference between futures and spot prices) has declined," and analyzed, "This suggests that expectations for further price appreciation have weakened or uncertainty has increased."

Markus Thielen, an analyst at 10x Research, explained, "When the yield spread falls below 10%, ETF inflows into Bitcoin are usually led by investors rather than arbitrage-focused hedge funds," and added, "Given the current spread level, it can be seen that the arbitrage activities of hedge funds have notably decreased."

Meanwhile, as of 3:44 p.m. on this day, Bitcoin is trading at $106,976 on CoinMarketCap, up 0.13% from the previous day.