The open interest (OI) in Bitcoin futures has surged to an all-time high, highlighting rising market activity and speculation as traders prepare for potential new record highs.
Data from CoinGlass shows that Bitcoin futures OI topped $80 billion on May 23 — a 30% rise since the beginning of the month. This spike suggests that traders are heavily leveraging positions, betting on Bitcoin’s upward momentum.
Open interest reflects the total number of active futures contracts that have not been settled. A rise in OI typically indicates a build-up of leveraged bets, which can significantly influence price movements.
Such high levels of leverage carry risks. If the market turns against these positions, forced liquidations may trigger rapid sell-offs, adding to downward pressure and market volatility.
Despite this, inflows into spot Bitcoin exchange-traded funds (ETFs) remain strong, exceeding $2.5 billion this week. Analysts believe this demand could help absorb some of the volatility created by excessive leverage.
In the options market, similar trends are visible. Deribit data shows over $1.5 billion in OI concentrated at strike prices of $110,000 and $120,000, with over $1 billion more at $115,000, $125,000, and $130,000 levels. About $2.76 billion worth of contracts are due to expire on May 23. The put/call ratio of 1.2% indicates more bearish positions, with a max pain point at $103,000 — the price where the most options will expire at a loss.
Bitcoin Briefly Falls Below $111K
Bitcoin has recently seen some price weakness, briefly dipping below the $111,000 mark on Coinbase, according to TradingView.
Despite the short-term pullback, Bitcoin is still up nearly 20% year-to-date and has rallied around 50% since plunging to $75,000 on April 7 following global tariff announcements from U.S. President Donald Trump.
BTC reached a new peak of $112,000 on May 22 but has hovered around $111,000 for the past day. As of 4:15 am UTC on May 23, the price dipped just below that level once more.
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