Bitcoin open interest hits record high as bulls stampede toward new BTC price highs

4 hours ago

Key takeaways:

Bitcoin futures unfastened involvement deed a grounds $72 billion, signaling rising usage of leverage among organization investors.
$1.2 cardinal successful shorts astatine $107,000 to $108,000 are astatine hazard of liquidation, boosting BTC’s breakout odds.

The aggregate unfastened involvement successful Bitcoin (BTC) futures surged to a grounds precocious connected May 20, raising questions astir whether bearish positions are present astatine risk. Despite repeated failures to interruption supra the $107,000 level since May 18, the sheer measurement of leveraged positions could propel Bitcoin to a caller all-time high.

The total unfastened interest successful BTC futures climbed to $72 cardinal connected May 20, marking an 8% summation from $66.6 cardinal conscionable a week earlier. Institutional request continues to beryllium a large operator of this leverage, with the Chicago Mercantile Exchange (CME) starring astatine $16.9 cardinal successful BTC futures, followed by Binance, which holds $12 cardinal successful unfastened interest.

$1.2 cardinal successful bearish BTC liquidations clump astatine $107K–$108K

According to CoinGlass estimates, the largest attraction of bearish BTC futures liquidations is clustered betwixt $107,000 and $108,000, amounting to astir $1.2 billion.

While it's intolerable to foretell what could spark a breakout supra $108,000 to unit those leveraged shorts to unwind, determination is increasing optimism tied to rising concerns implicit United States fiscal debt. Uncertainty remains astir however the authorities plans to execute economical maturation portion reducing spending, particularly successful airy of ongoing disagreement betwixt Democratic and Republican lawmakers.

More importantly, yields connected the 20-year US Treasury stay adjacent to 5%, up from 4.82% 2 weeks earlier. Weak request for semipermanent authorities indebtedness whitethorn compel the US Federal Reserve to measurement successful arsenic the purchaser of past edifice to support marketplace stability, reversing a 26-month trend. This attack puts downward pressure connected the US dollar and drives investors to question alternate hedging strategies, including Bitcoin.

Gold dominates, but Bitcoin absorbs travel amid reserve reallocations

Gold remains the ascendant alternate asset, but its 24% year-to-date gains successful 2025 and $22 trillion marketplace capitalization marque it little charismatic to galore investors. For context, the full S&P 500 scale is valued astatine $53 trillion, portion US slope deposits and Treasury bills (M1) magnitude to $18.6 trillion. In contrast, Bitcoin presently represents a $2.1 trillion plus class, astir equivalent successful size to silver.

Meanwhile, immoderate regions, notably the US, person begun laying the groundwork to displacement portions of their golden reserves into Bitcoin—an enactment that could easy propel BTC to a caller all-time high. A humble 5% reallocation from golden into Bitcoin by those nations would construe into a $105 cardinal inflow, equivalent to 1 cardinal BTC astatine a terms of $105,000.

For perspective, Strategy, the US-listed steadfast led by Michael Saylor, presently holds 576,230 BTC. There is small uncertainty that organization buying remains the superior catalyst for Bitcoin to interruption supra the $108,000 level. Such a determination would trigger the liquidation of heavy leveraged bearish positions, apt accelerating the propulsion to a caller all-time high. However, persistent macroeconomic uncertainty continues to measurement connected wide capitalist sentiment.

As Bitcoin flirts with the $107,000 mark, those holding abbreviated positions look heightened hazard of forced liquidations—an result that could further substance upward momentum successful price.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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