Some studies here. https://www.bis.org/speeches/sp220626b.pdf The future monetary system Turmoil in crypto markets, and deeper structural flaws H. Shin Published 2022 Economics Turmoil in crypto markets, and deeper structural flaws We meet at a time of turmoil in the crypto universe. The collapse of the Terra stablecoin and of its twin coin Luna in May is only the most spectacular recent shock in the crypto sector. The ecosystem of crypto coins that add layers of leverage and illiquidity through the system is showing severe strain. The prices of Bitcoin and Ether have crashed, and many lesser-known coins have seen their prices drop by 90% or more relative to their peaks last year (Graph 1). ................................................................................................................... https://darec.duke.edu/sites/templated7.pratt.duke.edu/files/u62/Dotcom_Crypto_Brini_Lenz_Rasiel.pdf Crypto dynamics during market downturns: Another dotcom boom-bust cycle? Alessio Brini Jimmie Lenz Emma Rasiel Introduction The cryptocurrency ecosystem has experienced astounding growth in the last two years, with 400% price increases within a year, as well as the launch of thousands of new coins and tokens. These factors have led the public to compare the crypto phenomenon to the dotcom boom of the late 1990s, in which we saw some 2000 internet IPOs, and their representative index (the Nasdaq) also saw extraordinary gains over a short period. The Nasdaq’s meteoric rise was followed by a dramatic crash in the early 2000s, leading to a loss of nearly 80% from peak to trough. If the dotcom boom-bust cycle is indeed a precedent for crypto, the inevitable forecast would be an impending collapse in the value of cryptocurrencies. In this article, we drill below the surface similarities of the dotcom and crypto markets and examine the behavior of market participants during selloffs in both scenarios. We find that investor responses are markedly different, suggesting that forecasts of an impending sustained loss of value in the crypto space may be exaggerated. We conclude by providing tentative justification for the hypothesis that cryptocurrencies may in fact represent an entirely new asset class.
I was one of the first to trade the newest Ether futures on CME (Micros I think they were?). I just wished they also allowed Options on Futures. But that seems reserved for the bigger sizes for the institutions.
I know I'm supposed to say NFA, but the perpetual futures on cryptos are really good for trading cryptos on leverage It trades 24/7/365 none of these Thanksgiving holidays matter With $1,000, you can easily short or long 10 full ETH, and to get liquidated, that's a 100 point move I'm on \my 4th ETH trade since last night (I've opened and closed 3 already)
Risk-reward wise it has delivered a good return adjusted to risk. Many tech stocks have seen multiple 70% drops in the previous 20 years.
The cryptos where you got true decentralization is working fine and is unaffected. Shitcoins or centralized platforms got problems. That includes pseudo "decentralized" platforms where in reality a small group of people hold the power through majority ownership.