Source: Cointelegraph
Original: “Bitcoin Open Interest Hits Record High as Bulls Stampede Toward New BTC Price Highs”
Key Points:
Bitcoin futures open interest has surpassed $72 billion, marking a historical record and indicating a significant increase in leverage usage by institutional investors.
$1.2 billion in short positions within the price range of $107,000 to $108,000 face liquidation risks, enhancing the probability of Bitcoin breaking through.
The total open interest in Bitcoin futures climbed to a historical high on May 20, drawing widespread attention to the risk status of bearish positions. Although Bitcoin has repeatedly failed to break the $107,000 mark since May 18, the current large scale of leveraged positions may provide strong momentum for Bitcoin to create new historical highs.
Total open interest in Bitcoin futures reached $72 billion on May 20, a substantial increase of 8% from $66.6 billion a week earlier. Institutional demand continues to be the main driver of this leverage growth, with the Chicago Mercantile Exchange (CME) leading the market, holding $16.9 billion in Bitcoin futures open interest, followed by Binance with $12 billion in open interest.
According to data analysis from CoinGlass, the largest concentration of bearish Bitcoin futures liquidation risk is in the $107,000 to $108,000 price range, totaling approximately $1.2 billion.
While it is currently impossible to accurately predict what factors will trigger Bitcoin to break the key resistance level of $108,000 and force leveraged short positions to liquidate, growing concerns about U.S. fiscal debt issues are bringing more optimistic sentiment. There remains significant uncertainty in the market regarding how the U.S. government can achieve economic growth while cutting spending, especially amid ongoing policy disagreements between Democratic and Republican lawmakers.
More critically, the 20-year U.S. Treasury yield is nearing 5%, up from 4.82% two weeks ago. The apparent weakness in long-term government debt demand may compel the Federal Reserve to intervene as a last buyer to maintain market stability, potentially reversing the policy trend of the past 26 months. This strategy would exert downward pressure on the dollar and drive investors to actively seek alternative hedging tools, including Bitcoin.
Gold continues to maintain its dominant position as an alternative asset, but its 24% increase so far in 2025 and $22 trillion market capitalization have diminished its appeal to many investors. For reference, the entire S&P 500 index is valued at $53 trillion, while total U.S. bank deposits and Treasury bills (M1) amount to $18.6 trillion. In contrast, Bitcoin currently represents a $2.1 trillion asset class, roughly equivalent in size to the silver market.
Meanwhile, some regions, particularly the U.S., have begun laying the groundwork for reallocating a portion of their gold reserves to Bitcoin—this move could likely propel Bitcoin to break historical highs. If these countries were to reallocate 5% of their gold reserves to Bitcoin, it would result in an influx of $10.5 billion, equivalent to purchasing 1 million Bitcoins at a price of $105,000.
Notably, the U.S. publicly traded company Strategy, led by Michael Sayol, currently holds 576,230 Bitcoins. Undoubtedly, institutional buying remains the primary catalyst for pushing Bitcoin past the $108,000 mark. This breakthrough would trigger the liquidation of high-leverage short positions, potentially accelerating the price toward historical highs. However, ongoing macroeconomic uncertainty continues to exert pressure on overall investor sentiment.
As Bitcoin's price approaches $107,000, short position holders face an increased risk of forced liquidation—this outcome could further boost upward price momentum.
Related: New York City Mayor Eric Adams Establishes Cryptocurrency Advisory Committee
This article is for general reference only and should not be considered legal or investment advice. The views, thoughts, and opinions expressed in the article are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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