Short excerpt from a YouTube video ("How Consistent") in which the speaker explains using a daily timeframe chart and relies on the futures perpetual derivatives market for Bitcoin price discovery. The speaker argues that Bitcoin’s intermittent bubbles are driven by high-leverage derivative positions, which increase volatility when those positions unwind.
We are looking at a standard daily time frame chart and we're using the. We are using the futures perpetual derivatives market because Bitcoin runs on not only cycles, but they're intermittent bubbles that are formed by high leverage positions. So derivatives are an excellent source for price discovery. Wherever you have high leverage positions, those bubbles will pop and the price will be. It creates volatility and price discovery.
