Bitcoin’s sharp decline has renewed concerns that trading in futures, options, ETFs, and other Bitcoin-linked products is having a larger impact on prices than direct buying and selling of the cryptocurrency itself.

Supporters of this view argue that many financial products can be created around the same Bitcoin holdings, allowing trading activity to grow faster than the supply of actual coins. They believe this can increase selling pressure and make prices move more on trader positioning than on demand for Bitcoin.

The debate comes as Bitcoin falls below key price levels and liquidations accelerate. While there is no consensus on the main cause of the selloff, the…