Surge in Bitcoins Open Interest Raises Concerns about Market Instability

A sudden change in direction of prices, known as a “whipsaw” action, can catch traders by surprise. The increase in open interest for Bitcoin has raised worries about this possibility. Kelly Kellam, of BitLab Academy, has pointed out that the rise in open interest, along with positive funding rates, may lead to a whipsaw effect on Bitcoin’s price. Experts are also cautioning traders and investors to be careful in light of this development.