Bitcoin Below $70K: Analyst Claims Derivatives Market Has Replaced On-Chain Price Discovery

TLDR: Bitcoin’s hard cap of 21 million coins no longer controls price due to unlimited synthetic derivatives exposure  Single Bitcoin can back multiple financial instruments simultaneously, creating fractional-reserve dynamics  Wall Street institutions manufacture inventory through cash-settled futures and perpetual swaps to control markets  Price discovery shifted from blockchain fundamentals to derivative positioning and liquidation flow [...]

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