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Gold/Mining/Energy : The Great Gold and Silver Mining Rush of the 21st Century

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To: Valuepro who wrote (9536)11/23/2025 2:32:28 PM
From: nicewatch  Read Replies (1) of 9671
 
Unsure this is the only reason BTC had such a sharp correction. These type of perpetual futures have existed in crypto for a while and before that FOREX trading among retail is the first I heard of it decades ago. The mktcap of BTC alone is still $1.7 trillion+, so $100 billion in these type of instruments is peanuts, imo.

Where the rubber meets the road is on a lot of those perpetuals the bettor often deposits BTC or stablecoins or other coins of value as the collateral instead of cash. So if that bettor wipes out his account, with any amount or leverage or not then that shop seizes said collateral and liquidates it. In the short term this can create extra order flow that's one-way if a bunch of stops are hit just like most other markets. In the old days in stocks this was referred to as margin calls going out.

Whatever BTC was originally intended to be the fact is it's turned into just another asset class that's now 95% correlated to Nasdaq. At this point liquidity flows are a bigger determinant of its short term movements just like most other volatile asset classes. There are value metrics into producing BTC, like electricity costs and time to mine plus the cost of the machines used to run its algorithm which supports its network. But due its outstanding performance since created, albeit highly volatile, most are just trading or holding the finish product which is actually just a cryptograhic code used on the BTC network. fwiw.

P.S. 1000 to 1 is obviously insane leverage. Have traded these in the past and 10 or 20 to 1 leverage is similar to most exchange traded futures contracts. Occasionally did 50-100 to 1 but only for very short periods, where a few hours was long term and the norm was minutes, haha.
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