Crypto Derivative Trading Volume Rose for First Time in 4 Months as Market Rallied in July

Crypto Derivative Trading Volume Rose for First Time in 4 Months as Market Rallied in July

Leverage, not the spot market, fueled a crypto market July rally that restored $240 billion in market capitalization. While leverage boosts returns, it exposes traders to forced liquidations by exchanges it they can’t meet margin shortages. Therefore, derivatives-led rallies like July’s often inject volatility into the market. That said, overall leverage still remains low compared with early 2021.

Source link

Be the first to comment

Leave a Reply

Your email address will not be published.


*