How did the futures-spot basis turning negative indicate increased selling pressure on Bitcoin?
Why is this the correct answer?
When futures trade below the current spot price, it means traders are willing to sell in the future at a lower price than the market value today. This "negative basis" signals that selling pressure is stronger than buying interest. For beginners, think of it as investors betting on lower prices by selling futures contracts. As more people sell, it pushes prices down and reveals a bearish outlook in the market. This concept helps learners understand how derivative pricing can reflect underlying sentiment.
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