Bitcoin (BTC) futures are signaling the weakness in the crypto market demand. Bitcoin futures contracts expiring on Friday have dropped to a discount level.

Trading below the index price of Deribit exchange, it fell to a discount level. This is considered a sign of decreasing risk appetite and selling pressure in the cryptocurrency market.

FUTURES TRADING BELOW SPOT PRICE
Andrew Melville, a research analyst at Block Scholes, stated to CoinDesk, “Futures prices trading below spot is considered an important indicator of a significant downward trend.” According to Melville, the near-term return rates on Bitcoin futures have dropped to a negative level for the first time in over a year. This indicates weakening expectations in the market and raised concerns about potential future price drops for BTC.

DECREASE IN DEMAND FOR BITCOIN FUTURES ON DERIBIT
Deribit is known as one of the world’s largest crypto options exchanges. The platform is critical for professional investors seeking to use synthetic strategies that combine futures, options, and spot markets. However, the recent decrease in demand for Bitcoin has led to futures prices falling below the spot market.

When futures trading in the crypto markets occurs at a lower level than the spot price, it is often a sign of an expectation of a decrease. Investors showing a tendency to avoid risk have raised the possibility of increased price fluctuations. This suggests that Bitcoin may face more selling pressure in the short term.