Crypto markets have good reason to go crazy again as perpetual futures go mainstream in the US
As bitcoin matured as an asset class, institutional adoption led to the cryptocurrency behaving more like other risky financial assets.
Now, the rising US popularity and institutional adoption of another financial innovation threatens to undo some of that progress by providing a vehicle in which short-term volatility can quickly snowball, leading to a cascade of position closures.
At its most basic level, it’s the same old form of the most common reason for dramatic price swings: leverage.
The eyebrow-raising timing of the more than $1 billion in short positions initiated in bitcoin and ethereum — which came shortly before President Donald Trump announced his intention to impose a 100% tariff on Chinese imports above existing measures…
