Bitcoin Price Stagnant as CME Futures Activity Slows

The Bitcoin price remains stagnant as CME futures activity slows down.

A recent analysis by Bitfinex shows that the BTC crypto carry trade is no longer paying off, with the basis, the gap between spot prices and CME futures prices, staying below 5.5% this year. This makes the trade less attractive for many traders.

The open interest on CME Bitcoin futures has fallen to its lowest level since the launch of the spot Bitcoin exchange-traded funds in early 2024, indicating fewer traders are opening new positions. Funding rates have started to move higher, but the basis needs to widen before the carry trade becomes attractive again.

Market analyst Darkfost notes that weak demand has plagued the market since the start of the year, with both spot and futures demand falling together at times. He explains that the strongest rallies usually happen when both spot buyers and futures traders are buying at the same time, but this is not currently happening.

The price of Bitcoin has traded in a narrow range for several months, with neither buyers nor sellers gaining significant ground. The BTC crypto CVD indicator shows selling pressure after Bitcoin's recent price rise, while there is still no large sell wall in the market.