“Futures premiums have dropped to their lowest levels,” reports Velo Data. The leading cryptocurrency by market value has plummeted over 18% to $50,000 in 24 hours, reaching its lowest level since February 2024.

According to Velo Data, the annualized three-month futures premium on Binance has dropped to 3.32%, the lowest since April 2023. Crypto exchanges OKX and Deribit are also seeing similar drops in futures premiums. This means that the return on the classic cash and carry strategy, involving a long position in the spot market or U.S.-listed ETFs and simultaneously selling futures, is now less than or at par with the 10-year U.S. Treasury yield.

What are the reasons for the plunge? “The sharp rise in the anti-risk Japanese yen and U.S. bond market shenanigans,” explain analysts. The sell-off, which is part of broad-based risk aversion in global markets, has led to futures on the regulated Chicago Mercantile Exchange now trading pretty much in line with spot prices.

“The strategy was quite popular among institutions in the first quarter when futures traded at a premium of over 20%,” experts add.