Crypto's riskiest asset spreads to U S
The article discusses the growing prevalence of perpetual futures contracts in the United States cryptocurrency market, despite being classified as some of the riskiest products by consumer protection groups. These contracts allow investors to speculate on asset prices, such as Bitcoin, with leverage of up to 40 times, and are traded around the clock—heightening the risk of significant losses. Particularly concerning is that some small investors initially profit massively but then face substantial losses or instant liquidation of their positions. Trading volumes have surged, reaching approximately $90 trillion last year. The market faces substantial risks from sudden price fluctuations, liquidation of positions when losses occur, and the implementation of leverage-reduction strategies during crises. All of this makes these contracts more dangerous than spot trading and threatens market stability amid rising demand.
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