How do leveraged positions affect Bitcoin’s volatility?

I’ve been reading more about how leverage and derivatives interact with Bitcoin’s price, especially during periods of higher volatility. It seems like large clusters of leveraged positions can sometimes amplify moves when the market becomes unstable.

Rather than focusing on short-term price action, I’m curious how people here think about the role of leverage in Bitcoin markets overall. Do you see it as something that adds useful liquidity, or does it mostly increase volatility and risk compared to Bitcoin’s original design?

Interested in hearing different perspectives on how this affects the broader ecosystem.