@enixknight87
Surging derivatives trading volume, with Bitcoin options open interest outpacing spot prices, amplifies spot market volatility. In Q1 2025, derivatives hit $1.33T, dwarfing spot markets. This can exaggerate price movements, as leveraged positions drive liquidations. Investors should use derivatives for hedging, employing options to cap losses while maintaining spot exposure. Monitoring open interest and funding rates aids strategic entries.
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