Bitcoin News

Story: Bitcoin Traders Are Shorting at the Top – But It Could Backfire Hard

By Pankaj K

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Bitcoin price is high, but perpetual futures say otherwise. To understand what’s going on, we need to step back and revisit how perpetual futures work.

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A warning sign? BTC Futures trade at sustained discount. Since the beginning of June 2025, this negative premium has held steady.

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Cautious sentiment amid bullish charts. Despite Bitcoin’s strong performance, derivatives traders are still reluctant to take on excessive…

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Short squeeze risk: What happens if the gap flips?. The deeper this perpetual futures discount grows, the more dangerous the setup becomes for short…

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Institutions are playing the long game. There’s also a deeper layer to this structure. Spot ETFs and large crypto funds continue to absorb…

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What traders should watch now. So, what should traders and investors pay attention to in the coming days?

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Conclusion: A risky game for bears. Bitcoin short sellers are making a bold move by betting against the market at its peak.

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Bitcoin is once again trading near its all-time highs. But while retail traders may be celebrating, something unusual is quietly building beneath the surface: Binance’s Bitcoin…

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This deviation is more than just a data quirk. In fact, it’s shaping up to be one of the most sustained and deep futures discounts in recent memory—even as Bitcoin pushes above…

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In this article, we explore why institutional players might be shorting BTC at these elevated levels, why that’s a risky move, and what the perpetual futures discount tells us…

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Unlike traditional futures contracts, perpetual futures have no expiration date. They aim to track the spot price as closely as possible through a mechanism called funding…

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In a strong bull market, perpetual futures often trade at a premium. Traders are willing to pay more for leveraged exposure, and the positive funding rates signal bullish…

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But right now, something is off. On Binance, BTC perpetual futures are trading $40–$50 below the spot price.

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That’s why this divergence is raising eyebrows across the crypto market.

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Since the beginning of June 2025, this negative premium has held steady. According to data from Alphractal, red bars representing the spot-futures gap have consistently deepened.

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