According to Farside Investors, the spread between the Bitcoin basis rate and government bond yields is narrowing. Given that government bonds are considered much lower risk, a further narrowing of this spread could potentially lead to a drying up of the basis trade. This analysis suggests a shift in the risk-reward balance for traders involved in basis trades, indicating a need for careful monitoring of these rates for future trading strategies.

According to Miles Deutscher, the amount of Bitcoin ($BTC) held in CME open interest has decreased to levels seen before the recent election. This reduction is attributed to the unwinding of the basis trade, which has contributed to a reset in the total leverage within the system. This development indicates a potential stabilization in trading dynamics, which could affect traders' strategies around leverage and risk management.