DeepSeek market fluctuations have caused the Bitcoin futures basis to turn negative for the first time since last August

ChainCatcher news, K33 Research Director Vetle Lunde stated that the sharp drop in Nvidia's stock price yesterday triggered a chain reaction in the cryptocurrency market, leading Chicago Mercantile Exchange (CME) traders to quickly hedge their risks. The Bitcoin futures basis fell to negative territory for the first time since August 2023, while the nominal open interest experienced the largest single-day drop in history, plummeting by 17,225 Bitcoin.

It is reported that the futures basis is the difference between the price of a futures contract and the current spot price of the underlying asset. This serves as an indicator of market sentiment and expectations. When the futures basis falls into negative territory, it indicates a shift towards bearish sentiment, and in the context of heightened risk aversion, traders are willing to sell futures at prices lower than the spot price.