Are There Other Factors besides Sentiment That Can Influence the Futures Curve?

Yes, while sentiment is a major driver, other factors can influence the futures curve. Costs of carry are a fundamental component; these include the costs of storing, insuring, and financing the underlying asset.

In the case of cryptocurrencies, these can also include staking yields, which can act as a negative cost of carry. Supply and demand dynamics in the spot market also play a crucial role.

For example, a sudden shortage of the asset in the spot market can drive up the spot price relative to futures, potentially causing backwardation even without a change in long-term sentiment.