Bitcoin Perpetuals Seen Becoming an Even Bigger Driver of Prices
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Bitcoin perpetual futures, one of the most popular derivatives contracts in crypto markets, are increasingly driving the largest digital token's price.
That's according to Conor Ryder, research analyst at Kaiko, who points out that the Bitcoin perpetuals-to-spot-volume ratio is at its highest in nearly two years. Perps, as they're sometimes known in industry parlance, don't expire and have been hugely popular with traders as the derivatives market is a place where a lot of speculation can occur, according to the researcher.
“It's a question of price discovery i.e. where the true price of an asset is actually determined. That is historically correlated with volumes, so wherever the majority of volumes are, the more influence that has on price,” Ryder said. “Perps have a larger sh...
