Bitcoin (BTC)’s famous bull market decline has not caught on. Here’s why

Derivatives are generally leveraged products that allow traders to take strong (buy) or bearish (sell) positions worth more than the amount deposited as margin on the exchange. Leverage is a double-edged sword that magnifies both profits and losses. Additionally, insufficient margin exposes traders to the risk of being liquidated or forced to liquidate. Additionally, large liquidations often lead to exaggerated bullish or bearish moves, so the more leverage you use, the more likely liquidations are to inject volatility into the market.