Bitcoin Open Interest Hits All-Time Highs as BTC Falls Below $111K

Bitcoin futures open interest (OI) has hit an all-time high on cryptocurrency derivative platforms as investors prepare for a potential new all-time high in the digital currency.

As per CoinGlass data, Bitcoin BTCUSD futures open interest has reached a high just over $80 billion on May 23, a 30% jump since the month started. This reflects a renewed building of leveraged positions by speculators who bet on the advance.

Open interest is the total number of active futures contracts that have not been settled or closed. An increase in OI is a strong indicator of increased speculation in the market.
An increase in OI generally indicates a market saturated with leveraged bets. In case Bitcoin's price is

reversed against such over-leveraged positions, adverse liquidations may create heavy selling pressure and volatility.

While there are risks, analysts are upbeat, citing more than $2.5 billion of inflows this week into spot Bitcoin ETFs as a stabilizing influence over excessive leverage.

The market for Bitcoin options is also warming up, with open interest surpassing $1.5 billion at strike prices of $110,000 and $120,000 on Deribit. Further significant OI exists at $115,000, $125,000, and $130,000, each in excess of $1 billion.

As of May 23, around $2.76 billion of notional value of contracts are about to expire. The put/call ratio stands at 1.2%, which means more bearish bets than bull bets, with a max pain level of $103,000—the level where most losses will be incurred by traders, according to Deribit data.

Bitcoin Dips Below $111K As Market Fluctuates

At the same time, Bitcoin dipped for a short moment below $111,000 on Coinbase, as reported by TradingView.

The cryptocurrency holds at just about 20% year-to-date and has risen almost 50% since its precipitous drop to $75,000 on April 7, in reaction to President Donald Trump's declaration of new worldwide tariffs.

Following the attainment of a new all-time high of $112,000 on May 22, BTC had generally stayed above the $111,000 mark until the recent fall at 4:15 am UTC on May 23.

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