Cryptocurrency Markets are Dominated by Perpetual Futures, as Evidenced by SpaceX's IPO
The process of setting cryptocurrency prices is often misunderstood, with many believing it is driven by spot trading, where buyers and sellers meet on an exchange. However, the reality is that perpetual futures, also known as perpetual swaps or 'perps', have become the primary driver of price discovery for bitcoin, ether, and other cryptocurrencies. These contracts, which never expire, account f…