The Binance Spot-Perpetual Price Gap has recently turned highly negative, reflecting a shift in sentiment as derivative traders turn bearish in the short term.
This selling pressure from the derivatives market has resulted in the largest Spot-Perpetual price gap ever recorded, reaching -59.14 USD.
This shift in investor behavior can be linked to recent U.S. macroeconomic data released by the FED, including projections for future rate cuts and inflation expectations.
The impact has not been isolated to crypto markets, stocks also experienced a major sell-off, with $1.8 trillion in market cap wiped out in a single day, marking the worst trading day since March 2020.
Historically, during bull cycles, Spot-perpetual price gaps tends to reverse and return to neutral territory.
When the gap reaches such extreme negative values, it has often represented a good buying opportunity, as market sentiment overreacts before recovering.
Written by Darkfost