5 ways derivatives could change the cryptocurrency sector in 2022 By Cointelegraph

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We‘ve all heard stories of billion-dollar future contracts liquidations being the cause of 25% intraday price crashes in (BTC) and Ether (ETH) but the truth is, the industry has been plagued by 100x leverage instruments since BitMEX launched its perpetual futures contract in May 2016.

The derivatives industry goes far beyond these retail-driven instruments, as institutional clients, mutual funds, market makers and professional traders can benefit from using the instrument‘s hedging capabilities.

Bitcoin/USD on FTX (blue, right) vs. U.S. 10-year yield (orange, left). Source: TradingView