I would like to clarify a little about futures and their impact on the crypto market. It is important to immediately understand that futures are not a factor influencing growth, but bets on growth or decline, like bookmakers. 🏦 In the minds of many, thanks to numerous “experts” and “market sharks”, there is an impression that “shave the hamsters” means taking money for yourself from the exchange or market - this is not so. The exchange and the market don’t care how much you earned or how much you went into the red. 📉📈
The theory that if there are a lot of short sellers for a coin worth billions, then it will definitely grow against the market in order to shave off the short sellers - NO. The coin doesn't care how many shorts there are (it only affects it indirectly).
I'll tell you with an example.
There is a product, for example, the CAL token. Something happened to the project within the company - a problem or failure or something else. Because of this, a certain number of holders began to drain it on SPOT, and the coin sank. 📉 Casino players see this and start shorting. The total amount of shorts may be, for example, 10 million, but this does not mean that these millions are related to capitalization. 😅 The casino players just bet on the fall, while others - as opposed to the growth. Further, for example, the project will eliminate the problem, and the holders will no longer sell, and the coin will begin to fluctuate in place or return to previous values, and the shorts will be shaved. BUT NEITHER THE PROJECT TEAM NOR THE EXCHANGE will take these 10 lyams for themselves. They will be taken by those who made a counter-bet, and the exchange on which the trades took place will take its commission. 💰 People are shaved by other people. 😏 Naturally, a certain group of people, having insiders, can place a bet more correctly and thereby receive a part from the liquidation of short sellers.
Now attention: if the project continues to have problems, and holders on SPOT continue to sell, and the price continues to fall, then no matter how many shorts there are, the price will continue to fall, without thinking about the need to shave someone. 📉
If we draw an analogy, the market is a football match, which is influenced by a bunch of factors, such as team composition, weather, coaching staff, etc. And it will depend on this whether the team wins or loses, BUT NOT FROM THE FACT THAT IN THE BOOKMAKING COMPANY THERE ARE MORE BETS ON WIN OR DEFEAT. ⚽️
Futures are bets on the movement of the market, not a factor that causes growth or decline. The exchange broadcasts the chart in real time. The graph moves from purchases and sales on SPOT, and those billions that “experts” talk about as a factor - they say liquidations per billion or longs per billion or vice versa - they do not go into the capitalization of the project, they do not affect the cost, they are distributed between futures players, as in sports betting. 🏟️ Some bet on team A, others on team B. Team A won - and bets on team B went to those who bet on team A, with the exception of the commission. 💸
Naturally, as I wrote above, there are insiders, there are frauds on the part of exchanges for their own benefit, etc., but this is dust for the global market. A billion in longs affects the price of Bitcoin less than a million for which a purchase is made on the spot, since it is on the spot that participants buy a specific coin, investing money in its capitalization and thereby influencing the price, and those who engage in futures trading do bets, and the money is distributed among themselves. Some shave, others. 😉
I wrote this because news and conclusions need to be filtered. It is worth looking at the real situation in the market and inside the project that interests you, and not at the rate indicators, because there may be huge numbers that are great for headlines in TG channels and the media, but these numbers have practically no impact on the price. 🤷♂️
Naturally, indirectly, part of the liquidity for spot purchases is taken from speculation on futures, but I repeat, this INDIRECT influence is dust. 💨
