Deribit derivatives exchange data suggests "a supporting sign" for the continued appreciation of bitcoin in the spring of 2024, according to an analyst.
Deribit Chief Commercial Officer Luuk Strijers pointed to data that shows the futures premium above the spot price of bitcoin has been increasing since early October for contracts expiring in March, June, and September next year.
Strijers told The Block that bitcoin's futures basis, the difference between the spot price of an asset and the future price of the same asset, has increased beyond 10%, presenting a strong indicator of market sentiment.
"When the basis is increasing, it suggests that the market expects the spot price to rise. The annualized basis is now 10-12%, which means the market expects the underlying asset to rise 10-12% in the coming year," Strijers added.
The chart shows the current basis is 10-12% annualized.
Bitcoin rally
Bitcoin 
BTC +2.95% broke through the $42,000 mark earlier this week. Strijers attributed the recent surge to a confluence of factors including widespread optimism and anticipation of multiple decisions about applications for spot ETFs.
BTC +2.95% broke through the $42,000 mark earlier this week. Strijers attributed the recent surge to a confluence of factors including widespread optimism and anticipation of multiple decisions about applications for spot ETFs.
Strijers also cited the easing of concerns following the settlement of Binance's legal matters. "There is also the escalating geopolitical tensions, easing of inflation, and the steady increase in institutional engagement," he added.
Bitcoin was up 2% on Tuesday, trading for $42,166 at 9:50 p.m. ET.
