Bitcoin derivatives markets are “healthier” than they were in the first quarter, according to a study after a new level of leverage

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Bitcoin (BTC) rocked classic-style leveraged traders this week, but new data suggests the market is by and large healthier than it was earlier in the year.

Data analytics firm Arcane Research highlighted the results of its latest weekly newsletter and showed how aligned the futures markets have become in the fourth quarter of 2021.

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The “healthier” market is sustaining the bullish trend

With a sudden BTC price correction that caused maximum pain to leveraged long traders on Wednesday, sentiment began to sway over market strength.

This is unjustified, with figures suggesting that derivatives markets are structurally much more solid than they were during the initial surge to $ 64,900 in April.

Arcane focused on what is known as the futures basis – the difference between the spot price of Bitcoin and the futures price on various exchanges.

January through April 2021 saw a sharp spike on a three-month basis, peaking for Binance and FTX at 46% and 45%, respectively, from April’s BTC / USD all-time high.

In contrast, CME Bitcoin futures were only trading at a premium of 12% at the time.

Now, however, not only are all three providers practically the same, but the base is much lower – even if Bitcoin outperforms its April performance.

Currently, Binance, FTX, and CME have premiums of 14%, 13% and 8%, respectively.

“The base is much lower now than it was when BTC traded above $ 60,000 in April – suggesting a healthier market,” Arcane added on Twitter.

3-month basic chart for Bitcoin futures. Source: Arcane Research / Twitter

Days until the first Bitcoin Spot ETF decision

As Cointelegraph reported, the pace of change between institutions in terms of Bitcoin exposure is becoming all the more telling.

Related article: The world’s largest bitcoin fund could become an ETF by July when the GBTC approaches an AUM of $ 40 billion

Gold, which has seen a lackluster price development over an extended period of time compared to BTC, is losing quickly as investors opt for the dominant cryptocurrency.

Grayscale, operator of the largest Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), has now surpassed the assets under management of the world’s largest gold fund.

Bitcoin futures-based exchange traded funds (ETF) are also setting records, while potential operator Bitwise announced this week that it would swap its plans for a spot-based product.

US regulators will make a decision on VanEck’s first spot-based ETF on November 14th.