The Basis Shock
As BTC began to rally into October, basis didn’t rise as aggressively as one would’ve imagined. BTC has become a perpetuals and futures-dominated market. The lack of aggression in futures indicates that sentiment may still be fragile and traders aren’t too comfortable upping their leverage right now.
Notably, basis on Huobi detached from the rest of the market. Huobi is a Chinese exchange, with a presumably large concentration of volume in mainland China. The Chinese government’s efforts to further clamp down on crypto in the country is no doubt causing Huobi’s futures pricing to deviate from other exchanges. OKEx seems to have fared well in this regard, which could possibly indicate that their user base isn’t as tied to China, or perhaps there is another underlying reason.