Bitcoin is wobbling ahead of the closely watched U.S. Nonfarm Payrolls report, a data point the Federal Reserve uses to guide its interest rate decisions.
The leading cryptocurrency briefly climbed above $107,000 during Fed Chair Jerome Powell’s latest comments but quickly retraced to $105,000, reflecting uncertainty in the market.
While traders brace for potential moves triggered by the labor report, one indicator is raising eyebrows: the premium on CME’s Bitcoin futures contracts has dropped to just 4.3% annualized — the lowest level since October 2023. That decline suggests a cooling of institutional enthusiasm, according to Markus Thielen of 10x Research.
“The fact that this premium has fallen from 10% earlier this year to current levels, even while BTC holds above $100,000, shows institutions are becoming more cautious,” Thielen told CoinDesk. He pointed to weakening expectations of short-term gains and growing unease about price direction as key factors.
The futures premium reflects how much more traders are willing to pay for Bitcoin futures over its spot price. A shrinking gap often signals reduced confidence in aggressive upward moves — and a more uncertain outlook for the weeks ahead.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/institutional-appetite-for-bitcoin-fades-as-futures-premium-drops-ahead-of-key-u-s-jobs-report/