Analyst: Bitcoin basis returns to neutral range, derivative long demand cools down

CryptoQuant analyst @AxelAdlerJr posted that the Bitcoin basis (7-day simple moving average) has fallen back to a neutral range, as the premium between spot and futures has significantly narrowed.

He pointed out that this change indicates a weakening demand for establishing long exposure through derivatives, and the market is no longer pricing in an aggressive risk appetite scenario. Typically, this means a decline in risk appetite, the initiation of a deleveraging process, and investors shifting to a wait-and-see stance. Axel Adler Jr believes that the current derivatives market has failed to continue pushing prices upward, and for longs to regain momentum, they will need stronger spot buying support.