Surge in Bitcoins Open Interest Raises Concerns Over Potential Market Volatility

A sudden change in direction of prices, known as a “whipsaw” action, can often catch traders by surprise. The recent increase in open interest for Bitcoin has raised worries about the possibility of such a scenario. Kelly Kellam of BitLab Academy pointed out that the spike in open interest, along with favorable funding rates, may lead to a whipsaw effect on Bitcoin’s price. Other professionals share this concern, urging traders and investors to proceed with caution.