to Surge
The recent collapse of the FTX exchange has had a significant impact on the performance of Bitcoin perpetual contracts. These contracts, also known as “perps”, are a type of derivative product that allows traders to speculate on the price of Bitcoin without actually owning any of the digital currency. Perps have become increasingly popular in recent months, as traders have sought to capitalize on the volatility of the cryptocurrency market.
However, the FTX collapse has caused perps to suffer their worst performance since their introduction. This is due to the fact that the exchange was one of the largest providers of these contracts, and its closure has caused liquidity to dry up significantly. As a result, traders have been unable to enter and exit positions in a timely manner, leading to large losses for those holding perps.
The situation has been further complicated by the fact that Bitcoin withdrawals from exchanges have continued to surge in recent weeks. This has caused a significant amount of liquidity to leave the market, making it even more difficult for traders to enter and exit positions. As a result, many traders have been forced to close their positions at a loss in order to avoid further losses.
The situation has been made worse by the fact that many traders are now wary of entering into any new positions due to the uncertainty surrounding the FTX collapse. This has caused a further drop in liquidity, making it even more difficult for traders to enter and exit positions.
It remains to be seen how the situation will play out in the coming weeks and months. However, it is clear that the FTX collapse has had a significant impact on the performance of Bitcoin perpetual contracts, and traders should be wary of entering into any new positions until the situation stabilizes. In addition, traders should be aware that Bitcoin withdrawals from exchanges are continuing to surge, which could further exacerbate the situation.
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- Source: Plato Data Intelligence: PlatoAiStream