Market fluctuations in futures trading (up/down) are primarily controlled by the **interplay of supply and demand, large traders (whales), market news, and technical factors**. No single force completely controls the market; rather, it is the cumulative effect of the following parties:
### 1. **The Fundamental Role of Supply and Demand**
- Futures contracts are "derivatives" whose price is based on the expected future price of underlying assets (such as Bitcoin or Ethereum). If more traders speculate that the price will rise (long position), demand increases and prices go up. If more people predict that the price will fall (short position), supply increases and prices drop.
- **Strike Price** is determined based on supply and demand, reflecting the market's collective sentiment.
### 2. **Large Traders (Whales/Institutions)**
- Traders with significant investments (such as hedge funds or institutional investors) can temporarily affect prices by placing large orders. For example:
- If a whale places a large "long" order of $100M, the price may temporarily increase.
- Similarly, large "short" orders can push the price down.
- However, this effect is temporary and remains subject to the fundamental forces of the market (supply and demand).
### 3. **News and External Factors**
- Government policies (such as crypto restrictions), economic statistics, or major events (like wars or technological changes) can immediately affect prices by altering trader sentiment.
- Example: If a country legalizes crypto, demand in futures contracts may increase.
### 4. **Technical Analysis and Trader Psychology**
- Many traders make decisions based on **technical indicators** (such as support/resistance levels, RSI, or MACD). When the price breaks a significant level, other traders follow this trend, leading to bullish or bearish price movements.
- **Emotional Responses** (fear or greed) also cause sudden fluctuations, especially near expiration dates.
### 5. **The Role of Market Makers and Exchanges**
- Exchanges (like Binance or CME) only provide platforms, but they do not directly control prices. However, they can indirectly influence prices by changing **leverage** rates or fees. For example: offering 100x leverage can promote aggressive speculation.
### ✅ Conclusion:
The volatility of the futures market is controlled by **a combination of multiple factors** rather than a single party. Small traders may resort to **risk management** (such as stop-loss orders) or **conservative strategies** (Conservative Trading) to avoid this volatility, which includes long-term thinking, #ETH4500Next? diversification, and avoiding volatile assets.
