Bitcoin In Backwardation (This Is Fine)

One of the joys of having a futures market is the ability to understand what investors are thinking about the future of the price. For bitcoin, it doesn't seem so great at the moment.

As we can see, the contracts for the bitcoin futures on the CBOE are currently in backwardation, meaning that contracts with a later expiration are trading consecutively lower.

(Click on image to enlarge)

Of course, something like this might have made me nervous on a normal day, but then I remembered that oil futures were trading in contango (opposite of backwardation) before the prices collapsed back in October.

Also, the volumes here are kind of silly. I mean, 227 BTC (less than $1 million) trading on a contract that expires today. Sure, the title is catchy but what can we really learn from this?

Today's Highlights

  • Shutdown: Day 26
  • Day's to Brexit: 72
  • Constantinople Delayed

Traditional Markets

You may have noticed that we're now including a countdown to Brexit in the highlights section, right next to the US government shutdown counter. I think they fit together neatly. Two governments descending into a state of turmoil over political wrangling.

Today, Theresa May's government will see the ultimate test. If she loses the vote of no confidence, the UK heads to new elections... again.

Over in the East, China decided to inject the market with a record level of stimulus. Yesterday's tax cuts may have been insufficient to maintain growth, so they've gone the route of free cash for the market.

In addition, it seems the Institue of International Finance has made a rather shocking estimation. It seems our entire economic system, from our homes to places of work and our governments are increasingly reliant on debt. 

Given all the above, it's no wonder that the European Central Bank is now sounding a new alarm.

Don't worry about any of this though. The stock markets are up today. Hope the earnings reports from the financial sector go well.

1 2
View single page >> |

Disclaimer: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.