Thank you for the insights again. The last article on stops is especially resonating with me. I’ve been contemplating doing something like this for a while but wondered if it would be an idiosyncratic decision that would make me broke.
I’m writing this comment here because I’ve been doing some research on backwardation, and I feel this is a better place to ask you about it.
I think I understand backwardation from the technical perspective, but I’m still missing the psychological one. Every explanation I read implies that in backwardation, you’d expect futures to rise and spot to fall. How can then this be a bullish case for the spot market of bitcoin? I remember you’ve written several times about it, and I still don’t understand what would drive the spot price up under these conditions. Would you mind writing a post on the psychology of backwardation and contango some time in the future?
Thank you.