Short excerpt from a YouTube panel (host Kosta Ouzas with speakers) discussing how increased leverage and futures trading amplify crypto market cycles. The speakers note that despite a large liquidation event, the market moved only ~18%, and attribute market moves and bubbles to elevated leverage and futures-driven price discovery.
Do 40. But now the market's mature, there's so much more money in it and there's so much more leverage. That and only an 18 move was the biggest event in history. I mean, that's crazy to me.
And half of it, half of it was propelled by liquidations.
So, you know.
Yes. So what we're actually saying is that more. There's more leverage than ever before.
Yeah.
And. Yeah, so. So this idea. So then, you know, discussing cycle theory is that cycles and bubbles are motivated and driven by leverage. Right. The spot market's not going to have.
Bubbles like.
A highly leveraged market would.
Mark talks about this. Right. The futures drive discovery.
That drives discovery.
