2021 in review pt 3 of 5: Derivatives on fire

2021 has taught us that crypto traders have a much heftier risk appetite than the average Joe - leading to massive volatility, long and short squeezes and plenty of market action.

The open interest in the bitcoin futures and perpetuals market peaked at $27.3 billion in the middle of April, and the market was much more leveraged towards further upside. We also saw high leverage in the futures market as bitcoin reached its $69,000 all-time high in November. The following charts illustrate 2021's wild tendencies in the futures market.

2022 prediction: Retail-traders haven’t learned anything from the liquidation cascades this year and will continue to go hard on leverage.

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