Published on January 02, 2024 16:55 GMT+00:00edited on January 02, 2024 17:01 GMT+00:00

There is a substantial premium of over $2,000 on bitcoin futures contracts on Binance that are set to expire at the end of March. These conditions indicate the market expects bitcoin's price to appreciate this spring, according to an analyst.

When futures contracts trade at a higher value than the current spot price, it is termed "contango." This condition indicates that the market anticipates an appreciation in the price of the asset before the expiration date of the futures contract, which, in this case, is March 29.

YouHodler Chief of Markets Ruslan Lienkha described the current contango as "a clear bullish indicator" for bitcoin. He added that institutional investors are hedging the bitcoin price using futures and that they expect further growth after the possible approval of …