Bitcoin (BTC) Futures Hit Deepest Backwardation Since FTX Crash, Signaling Market Stress

The Bitcoin futures market has entered its most pronounced state of backwardation since the collapse of the FTX exchange in November 2022. This critical metric, where futures contracts trade at a lower price than the current spot price of Bitcoin, indicates strong selling pressure in the derivatives sector. Analysts interpret this deep backwardation as a sign of heightened bearish sentiment and potential market stress among traders. The phenomenon often reflects a preference for holding immediate cash over futures contracts, typically seen during periods of uncertainty or negative price expectations. This development is being closely monitored as a key indicator of institutional and professional trader sentiment towards BTC's near-term price trajectory.