The Spot-Perpetual price difference on Binance has just reached a record negative level of -59.14 USD, indicating a pessimistic short-term sentiment among derivative traders.
The selling pressure from this derivatives market is related to the macroeconomic data of the U.S. released by the FED, including forecasts regarding interest rate cuts and inflation expectations.
Not only the cryptocurrency market but also the stock market has been heavily affected, with 1.8 trillion USD in market capitalization wiped out in one day, marking the worst trading day since March 2020.
History shows that during bullish cycles, the Spot-Perpetual price difference often reverses to a neutral level.
When the price difference is extremely negative like this, it is often a good buying opportunity, as market sentiment overreacts before recovering.
