Surge in Bitcoins Open Interest Raises Concerns About Market Volatility

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