Bitcoin Market Faces Decline Amid Increased Selling Pressure

Summary:
The ongoing selling pressure on cryptocurrencies has led to a significant drop in Bitcoin’s market price, which has also negatively impacted Bitcoin futures cash-and-carry trades. These trades, favored for their strategy of simultaneous purchasing and selling, had previously offered a risk-free annualized premium of 10%. However, returns have now been effectively reduced to 5%, and the premium has further dipped to 6% on paper and 3% after considering holding costs.
Bitcoin’s price has fallen to $62,300, losing 3.31% in the last 24 hours. Despite this drop, there remains a neutral trader sentiment with potential for Bitcoin to reach the $100,000 mark in 2024. However, this will require Bitcoin to move beyond the risk-free return zone in cash-and-carry trades. Analysts suggest that the attractiveness of BTC futures trades is waning, which may lead traders to explore other cryptocurrencies. Bitcoin has recovered over 12% from June highs, with predictions pointing to a possible decline to $60,000, indicating a potential major market shift.