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5 ways derivatives could change the cryptocurrency sector in 2022 -Breaking

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We‘ve all heard stories of billion-dollar future contracts liquidations being the cause of 25% intraday price crashes in (BTCEther (ETHHowever, this is not the case. Since BitMEX’s perpetual futures contract was launched in May 2016, the industry has suffered from 100x leverage.

The derivatives industry goes far beyond these retail-driven instruments, as institutional clients, mutual funds, market makers and professional traders can benefit from using the instrument‘s hedging capabilities.

Bitcoin/USD on FX (blue to the right) vs. U.S. 10 year yield (orange to the left). TradingView