A sudden change in direction of prices, known as a “whipsaw” action, can often surprise traders. The recent increase in Bitcoin’s open interest has raised worries about such a situation. Kelly Kellam from BitLab Academy pointed out that the growth in open interest, along with favorable funding rates, may lead to a whipsaw effect on Bitcoin’s price. Similar concerns are shared by other experts, who are urging traders and investors to be cautious.
Surge in Bitcoins Open Interest Raises Concerns About Market Volatility
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