How Futures and Derivatives Influence Spot Crypto Prices: Uncovering Market Dynamics

Derivatives markets can provide liquidity and risk management, helping institutional players hedge their positions. However, their speculative nature often amplifies volatility, which could hinder long-term stability and growth in the crypto space.
 
Futures and derivatives can both stabilize and amplify volatility in crypto markets, as they allow for hedging but also increase speculative pressure.
 
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