How does holding a 'perpetual futures' position affect the value of a cryptocurrency?

1 answers

• Mar 15, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that holding a 'perpetual futures' position can impact the value of a cryptocurrency due to the leverage involved. Traders who hold these positions can amplify their gains or losses, which can lead to increased price volatility. Additionally, the trading activity associated with 'perpetual futures' positions can create market sentiment and influence the overall demand for a cryptocurrency. Therefore, it's important to consider the impact of these positions when analyzing the value of a cryptocurrency.
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