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CYCLESCOPE · LEVERAGE

Futures Basis

The annualized premium or discount of a quarterly Bitcoin futures contract to spot. It indicates the price of dated bullish or defensive positioning.

WHAT IT MEASURES

The price of dated futures

Positive basis means futures trade above spot—contango. Negative basis means a discount to spot—backwardation.

HOW IT IS CALCULATED

Premium annualized

((Futures ÷ spot) − 1) × 365 ÷ days to expiry × 100%

The page uses the Binance Futures current-quarter contract.

HOW TO INTERPRET

Both extremes carry risk

  • < 0%Backwardation, often associated with stress or defensive demand.
  • 0–10%Ordinary contango and moderate carry demand.
  • 10–20%Elevated bullish leverage.
  • > 20%Historically hot carry; confirm with funding and OI.
HOW TO USE IT

Compare like maturities

Basis naturally converges toward expiry. Contract rolls should be considered when reading changes over time.

LIMITATION

The bands are contextual

Basis depends on tenor, venue, borrowing costs and arbitrage access. It cannot identify a cycle top on its own.

This material is for market research and is not investment advice.