According to Henri Arslanian, perpetual swaps, also known as perps, are a type of derivative contract in the crypto market that allow traders to speculate on the price of cryptocurrencies without an expiry date (source: @HenriArslanian on Twitter, May 13, 2025). He highlights that perps provide high leverage and deep liquidity, making them essential tools for active traders seeking to hedge or amplify positions. The popularity of perpetual swaps on major crypto exchanges has significantly increased trading volume and volatility, impacting both short-term price movements and long-term market dynamics. Henri emphasizes that understanding how perps function is critical for traders aiming to manage risk and capitalize on trading opportunities in the evolving digital asset landscape (source: @HenriArslanian on Twitter, May 13, 2025).

According to @ThinkingUSD, Bitcoin is highlighted as a crucial asset for wealth preservation, and stablecoins are noted for enabling seamless transactions without intermediaries, crucial for commerce. These digital assets are expected to gain wider acceptance, enhancing their utility in trading. Additionally, the role of perpetual swaps in facilitating 24/7 stock trading is emphasized as a significant development in crypto markets. Source: @ThinkingUSD.

According to Trader_XO, the recent BTC perpetual swaps trade resulted in a loss as the price hit resistance, and the trader was forced to cut the position prior to a breakdown. This marks the first loss trading perpetual contracts on the long side this year. The daily RSI indicates an oversold condition, and high-timeframe EMAs and MAs are not favorable for bullish trades. The trader is monitoring for future setups.

According to Flood (@ThinkingUSD), the awareness of perpetual swaps among memecoin traders could significantly impact the trading dynamics in cryptocurrency markets. Perpetual swaps, which allow traders to bet on the future price of cryptocurrencies without owning them, could lead to increased volatility and liquidity in memecoin trading. This understanding can enable memecoin traders to leverage their positions more effectively, potentially altering market behavior.