This is a followup to my video about the Bitcoin Cash and Carry arbitrage trade. When I made the video the premium on December futures was over 21%. It took a dive on the last down move of Bitcoin and has now settled around 15%. If people were paying attention they could have locked in the value of FTX:BTCUSD at $57,000 PLUS captured that additional 6% difference!
A lot of traders are coming to Bitcoin in recent months hoping for 1000% returns to grace them as if the run is sure to continue. Having seen multiple bubble and bust cycles in my time trading Bitcoin since 2013 I've opted for a different approach. Starting last year I began employing a futures cash-and-carry strategy using the Bitmex Exchange. Usually and...
Back on December 20th, before the wild run, I put out a video on how to hedge existing Bitcoin positions and potentially bank some bonus profit on the premium between the spot price of Bitcoin and OKCoin 3 Month futures contracts. Now the trade has come full circle from drawdown at the top of the bubble, to mean reverted expectations, to bonus profit on the...