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What Is “Backwardation” in the Context of Crypto Futures?

Futures price is below the spot price, indicating bearish expectations and selling pressure.
Greeks.Live28.10.25

What Is “Backwardation” in the Context of Crypto Futures?

Backwardation is a market condition where the price of a futures contract is lower than the spot price of the underlying asset. This inversion of the normal contango state suggests that traders expect the spot price to fall in the future.

It is a common sign of bearish sentiment and heavy selling pressure, often seen during market crashes.

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