Surge in Bitcoins Open Interest Raises Concerns of Increased Market Volatility

A phenomenon known as a “whipsaw” occurs when prices suddenly reverse direction, often surprising traders. The sudden increase in open interest for Bitcoin has raised worries about this happening. Kelly Kellam of BitLab Academy pointed out that the rise in open interest, along with favorable funding rates, may lead to a whipsaw effect on Bitcoin’s price. Many experts share this concern, urging traders and investors to be cautious.