Summary
TLDR: Derivatives are seen as creating artificial demand and supply in the market, injecting volatility and speculation. A decline in their share of market activity could be good news for crypto bulls hoping for a price rally.
Key Points
1. Derivatives are criticized for creating artificial demand and supply through leverage, adding volatility to the market.
2. A decline in derivatives’ share of total market activity could be positive news for crypto bulls anticipating a price rally.
3. Derivatives are seen as a proxy for speculative activity, especially during major market tops.