Bitcoin Futures Open Interest Hits $72 Billion, Institutional Investors Drive 8% Weekly Surge

Bitcoin futures open interest reached an unprecedented high of $72 billion on May 20, indicating a surge in leveraged positions among institutional investors. This marks an 8% increase from the previous week's $66.6 billion, with the Chicago Mercantile Exchange (CME) leading at $16.9 billion in BTC futures, followed by Binance with $12 billion in open interest. The significant volume of leveraged positions suggests that Bitcoin could be propelled to new all-time highs, despite recent failures to break above the $107,000 level.

According to estimates, the largest concentration of bearish BTC futures liquidations is clustered between $107,000 and $108,000, amounting to approximately $1.2 billion. This cluster of liquidations could boost Bitcoin's breakout odds, as a price surge above $108,000 would force these leveraged shorts to unwind. The uncertainty surrounding United States fiscal debt and the potential for the US Federal Reserve to intervene as the buyer of last resort for long-term government debt adds to the growing optimism. This intervention could put downward pressure on the US dollar, driving investors to seek alternative hedging strategies, including Bitcoin.

Gold remains the dominant alternative asset, but its 24% year-to-date gains in 2025 and $22 trillion market capitalization make it less attractive to many investors. In contrast, Bitcoin currently represents a $2.1 trillion asset class, roughly equivalent in size to silver. Some regions have begun laying the groundwork to shift portions of their gold reserves into Bitcoin, which could easily propel BTC to a new all-time high. A modest 5% reallocation from gold into Bitcoin by those nations would translate into a $105 billion inflow, equivalent to 1 million BTC at a price of $105,000.

Institutional buying remains the primary catalyst for Bitcoin to break above the $108,000 level. Such a move would trigger the liquidation of heavily leveraged bearish positions, likely accelerating the push to a new all-time high. However, persistent macroeconomic uncertainty continues to weigh on overall investor sentiment. As Bitcoin flirts with the $107,000 mark, those holding short positions face heightened risk of forced liquidations, an outcome that could further fuel upward momentum in price.