Bitcoin Below $70K: Analyst Claims Derivatives Market Has Replaced On-Chain Price Discovery

Bitcoin Leverage Surge Tests Market Resilience As Traders Navigate Volatile Territory

Bitcoin’s derivatives markets are heating up dramatically as leverage-hungry traders pour into positions betting on a price rebound, but the surge in speculative activity carries warning signs that could trigger another significant shakeout across the cryptocurrency ecosystem. Trading at $68,734 with a 2.06% decline over 24 hours, Bitcoin maintains its dominant position commanding 58.46% market share despite persistent headwinds. The cryptocurre…

Bitcoin Below $70K: Analyst Claims Derivatives Market Has Replaced On-Chain Price Discovery

TLDR: Bitcoin’s hard cap of 21 million coins no longer controls price due to unlimited synthetic derivatives exposure  Single Bitcoin can back multiple financial instruments simultaneously, creating fractional-reserve dynamics  Wall Street institutions manufacture inventory through cash-settled futures and perpetual swaps to control markets  Price discovery shifted from blockchain fundamentals to derivative positioning and liquidation flow mech…