Bitcoin Futures Open Interest Hits $80 Billion, Up 30% This Month

Coin WorldFriday, May 23, 2025 1:36 pm ET
1min read

Bitcoin futures open interest has surged to unprecedented levels this week, with traders aggressively entering contracts that anticipate rising prices. The open interest reached $80 billion on May 23, marking a 30% increase since the beginning of the month. This surge indicates that more capital is now invested in Bitcoin's future movements than ever before.

According to CoinGlass, over $80 billion worth of Bitcoin futures contracts remain open, setting a new record. Traders have increased their positions by approximately 30% since May 1, with many leveraging borrowed funds to bet on higher prices. Significant market shifts in either direction could trigger forced sales if the market reverses.

Spot Bitcoin ETFs have attracted over $2.5 billion in inflows this week, reflecting real coins being moved into vaults. Institutions are not only trading on paper but are also purchasing actual Bitcoin. These inflows provide stability to the market when risky bets start to falter, adding a layer of demand that was absent in previous rallies.

Bitcoin options open interest is also at remarkable levels. On Deribit, traders have placed more than $1.5 billion in bets at the $110,000 and $120,000 strike prices. Additionally, there is over $1 billion in bets at the $115,000, $125,000, and $130,000 strike prices. This indicates that many traders believe the price could continue to rise well above six figures, but it also means a significant amount of money is riding on a narrow range of outcomes.

Bitcoin's spot price climbed to around $111,150 in late trading, reaching as high as $111,999 earlier in the day. This new high was achieved through a steadier climb compared to past breakouts. Many attribute this rise to easing trade tensions between the US and China, as well as Moody’s downgrade of US sovereign debt, which has driven interest in alternative stores of value. This combination of factors has helped sustain the price increase without the typical volatility.

Nearly $2.76 billion of Bitcoin contracts are set to expire today, May 23. The put/call ratio stands at 1.2, indicating slightly more bets on a price drop than on a rise. The so-called max pain level is near $103,000—the point where the largest number of options will finish worthless. If the price drifts toward this level, it could trigger squeezes or sudden moves as traders react.

Looking ahead, traders will monitor whether ETF demand can continue to counterbalance the risks from crowded futures and options markets. A small pullback could spark a wave of liquidations, sending prices tumbling quickly. However, continued significant inflows into ETFs could extend this rally. Regardless, volatility is expected to remain high in the coming weeks.