CoinDesk·4 min read·hard

Bitcoin and ether markets are ruled by perps. SpaceX showed how far their influence can go

S
Shaurya Malwa
Bitcoin and ether markets are ruled by perps. SpaceX showed how far their influence can go
AI Summary

The article explains that perpetual futures contracts, or 'perps,' now dominate the cryptocurrency market, accounting for 93% of futures volume. Research suggests these derivatives, rather than spot markets, are the primary drivers of price discovery for assets like Bitcoin and Ether.

Ask most people how a crypto price gets set and they will describe spot trading: buyers and sellers meet on an exchange, and the last trade prints the price. But that has not been how it actually works for years as far as bitcoin, ether and the broader crypto markets are concerned.

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