Perpetual futures contracts have become the dominant force in Bitcoin trading, accounting for 68% of the trading volume and increasingly setting market prices. This shift from niche to core infrastructure is facilitated by unified order books and cross-margin systems. However, recent liquidation events have highlighted vulnerabilities in collateral management, prompting calls for enhanced transparency, real-time risk limits, and more robust insurance pools to strengthen market trust.
The surge in trading volume has also influenced the fear and greed index, pushing it towards overbought levels and indicating potential volatility in the market. As perpetual futures continue to redefine liquidity rules, market participants remain vigilant about the associated risks and the need for improved risk management practices.
Perpetual Futures Dominate Bitcoin Trading, Raising Liquidity Concerns
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