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ELi5- can some explain how bitcoin perpetual derivatives affect the underlying bitcoin spot price?

Binance

Cryptocoins Exchanges / Binance 165 Views

I understand how they work on their own (futures vs spot) , but am not fully understanding why the perpetual futures price will affect the underlying spot price ? eg, we hear of 'cascading liquidations' in the futures market when degen longs get wiped out in cascading manner when the spot prices tank. but how do these liquidations cause the spot market to dip even more? arn't the spot and futures separate markets?

submitted by /u/becks0303
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