What Does Persistent Backwardation Typically Signal about the Institutional Demand for Bitcoin?

Persistent Backwardation, where the futures price is consistently lower than the spot price, often signals a strong institutional demand for immediate spot Bitcoin. It can also suggest that institutions are heavily shorting the futures market to hedge large spot holdings or anticipate a significant near-term price drop.

It is a less common condition than Contango and can indicate a scarcity of spot liquidity or strong bearish sentiment.