BTC not yet in capitulation phase, further declines possible, says analyst

Bitcoin has not yet entered its capitulation phase and could see further declines, according to Greg Magadini, Director of Derivatives at Amberdata. Magadini noted that BTC has historically bottomed when the basis—the difference between futures and spot prices—widens significantly. During the 2022 bear market, for instance, 90-day futures traded at a 9% discount to the spot price. In contrast, he pointed out that there has been no significant change in the basis recently. The current 90-day basis remains at around 4%, a level comparable to the yield on risk-free government bonds. He concluded that if futures traders begin to sell off their positions, BTC could experience an additional drop in price.