1
0
The perpetual-Spot Gap tracks the difference between Binance’s perpetual futures price and BTC spot price. When this Gap turns positive, BTC enters a bullish phase.
The narrowing Binance BTC perpetual-spot gap is a significant market insight worth considering to understand Bitcoin’s market signals. The perpetual futures price of BTC on the Binance exchange is trading below its spot price. This means that traders are cautious in their moves and unwilling to pay a premium.
The gap is narrowing. What does this mean?
A narrowing gap means the market’s bearish pressure is weakening. Historically, when perpetuals trade at a premium(positive gap), it is a bullish signal. Traders are willing to pay more to get future BTC exposure based on rising confidence.
So, why does this matter?
The narrowing gap signal appeared in the late 2020-2021 bull run, and some parts of 2024. As the bearish pressure weakens, trade war calms down, and governments become pro-crypto, will the gap flip positive soon?
Heightened ETF inflows, funding rates, and macro sentiment could strengthen the signal and give insights into the strength of BTC’s growing bullish momentum.
