Surge in Bitcoins Open Interest Raises Concerns About Market Volatility

A “whipsaw” movement occurs when prices suddenly reverse direction, frequently surprising traders. The sudden increase in Bitcoin’s open interest has raised worries about this possibility. Kelly Kellam of BitLab Academy pointed out that the growing open interest, along with favorable funding rates, may lead to a whipsaw effect on Bitcoin’s price. Various experts share this view, urging traders and investors to proceed with caution.