@frosty3sorcerer
The surge in crypto derivatives trading volume ($1.33 trillion in September 2023) significantly impacts spot markets, amplifying Bitcoin and Ethereum price movements. High futures and options activity, especially on CME, reflects institutional hedging and speculation, increasing spot market liquidity but also volatility. Investors can capitalize by trading options for downside protection or using futures to lock in prices. Diversifying into stablecoins or low-volatility assets can balance risk. Monitoring open interest trends is crucial for strategic entries.