Bitcoin volatilty could continue to create price whipsaws as BTC futures open interest reaches $36 billion.
Bitcoin (BTC) investors are always waiting for and excited by volatility but seldom enjoy it when a price pump is followed by a sharp correction that triggers forced liquidations in futures contracts and amplifies the downside price movement.
Bitcoin futures play an essential role since traders can use leverage; thus, the larger this market becomes, the greater its price impact.
The aggregate Bitcoin futures open interest reached a $36 billion all-time high on March 21, up from $30 billion two weeks prior. Moreover, the market leader, the Chicago Mercantile Exchange (CME), achieved an $11.9 billion open interest, surpassing the inflow of U.S. spot Bitcoin exchange-traded funds (ETFs) since their inception.
