Odaily News Vetle Lunde, head of research at K33, said that yesterday's plunge in Nvidia's stock price had a chain reaction on the cryptocurrency market, and Chicago Mercantile Exchange (CME) traders quickly avoided risks. Bitcoin futures basis fell to negative values for the first time since August 2023, while notional open interest saw its largest single-day drop ever, a drop of 17,225 Bitcoins.
It is reported that the futures basis is the difference between the futures contract price and the current spot price of the underlying asset, which is an indicator of market sentiment and expectations. When the futures basis falls into negative territory, it indicates a turn for the bearish sentiment, and traders are willing to sell futures at a price lower than the spot price amid heightened risk aversion.