Latest / The Cryptocurrency Economy with Fexingo: Bitcoin, Ethereum, and Digital Money Markets
Why Crypto Volatility Isnt Down It's Just On-Chain Now
Bitcoin and Ethereum are down 4-5% in a week, yet the VIX is low and traditional markets are calm. Lucas and Luna argue that volatility hasn't disappeared — it's migrated on-chain, where liquidation cascades and DeFi leverage cycles create their own risk profile. They walk through the data: open interest in perpetual swaps sitting at $38 billion, funding rates flipping negative twice in May, and the mechanics of a 5% move in BTC now triggering $800 million in forced liquidations. Using the current market context — Fed funds flat at 3.64%, stablecoin issuance contracting — they show…
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