The below is an excerpt from a recent edition of the Deep Dive, Bitcoin Magazine‘s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
Yesterday’s Daily Dive took a look at some of the structural changes in the bitcoin derivatives market over the course of 2021 and what they mean.
First, what is a derivative?
A derivative is a contract between two (or possibly more) parties whose value is derived from one or more underlying assets. A contract speculating on the price of bitcoin six months from now is an example of a derivative contract.