BTC Futures Basis Indicators Surge After US Inflation Report

BTC Futures Basis Indicators Surge After US Inflation Report

Bitcoin's futures basis indicators have risen significantly following the release of the US April inflation figures. According to an analysis by digital asset manager Zerocap, the three-month annualized basis has recovered by roughly 10% over the past week. This suggests that the market is becoming more bullish on Bitcoin's future price. The Consumer Price Index (CPI) data for April showed that inflation rose by 4.2% year-over-year, which was higher than expected. This led to a sell-off in the stock market and a flight to safe-haven assets like Bitcoin. The rise in the BTC futures basis indicators suggests that traders are betting that Bitcoin's price will continue to rise in the coming months. This is likely due to the fact that inflation is expected to remain high, which will make Bitcoin a more attractive investment. In addition, elevated funding rates across the perpetual futures market suggest that bullish sentiment continues to dominate. This means that traders are willing to pay a premium to hold long positions in Bitcoin. Overall, the recent rise in BTC futures basis indicators is a positive sign for the market. It suggests that traders are becoming more bullish on Bitcoin's future price, and that this bullish sentiment is likely to continue in the coming months. ```