Bitcoin has eclipsed the $41,000 mark, eliciting fervor among traders and amplifying the returns of the cash and carry arbitrage strategy, with futures commanding a notable 10% premium. Marking its zenith since April 2022, Bitcoin's ascent to this milestone has ignited a palpable enthusiasm within the trading community. This upswing not only fuels optimistic projections for Bitcoin's trajectory but also furnishes lucrative prospects for market-neutral traders.
The Bitcoin cash and carry arbitrage strategy, presently yielding an annualized return of no less than 10%, embodies a market-neutral methodology empowering traders to capitalize on the discernible price differentials between the spot #market and futures contracts.
As of now, futures contracts are transacting with an annualized premium fluctuating between 8% and 12%, presenting traders with a prospective return within this spectrum, excluding associated trading expenses.
In conclusion, #Bitcoin's recent ascent to surpass $42,000 has set the trading arena ablaze, particularly invigorating proponents of the cash and carry arbitrage strategy..
Several factors contribute to the current rise in Bitcoin’s price, including excitement for an upcoming #ETF decision, easing concerns over Binance's legal issues, geopolitical tensions, and growing institutional interest.says #Deribit's Chief Commercial Officer Luuk Strijers.
The futures basis rising beyond 10% is a strong indicator of positive market sentiment.
