Bitcoin Futures Open Interest Hits All-Time High Amid Bullish Sentiment

Coin WorldThursday, May 29, 2025 8:33 pm ET
1min read

Bitcoin sentiment has surged recently as the total notional interest in futures tied to this digital currency has climbed, reaching an all-time high over the last several days. This increase in open interest in derivatives contracts while bitcoin prices were trending upward indicates a bullish market sentiment towards the digital currency. According to market analyst Greg Magadini, the open interest for futures contracts in the broader crypto market has also been showing strength, pushing to new records.

Magadini, director of derivatives for a digital asset data provider, highlighted that the open interest in bitcoin futures reached an all-time high recently. This development is significant as it reflects the growing confidence among investors in the digital currency market. The chart illustrating this trend shows a steady climb in open interest, underscoring the bullish sentiment.

On Friday, May 30, billions of dollars’ worth of bitcoin options are set to expire. Magadini commented on the potential implications of this development, stating that the expiration has a large overhang of positive dealer gamma at $110,000, the BTC all-time-high area. This means that option market-makers were selling BTC at this level, which can help explain the sentiment for prices stalling out here. Magadini further noted that looking at all expirations, peak gamma for BTC currently stands around $121,000, suggesting some more upside to be found, although the price may move higher without a strong catalyst for an explosive move.

Paul Howard, senior director at a crypto trading firm, also provided insights into the market. He stated that bitcoin volatility has remained near historic lows, but with the upcoming options expiry, implied volatility could begin to climb toward the 45 level. Howard emphasized that the price gap below the $90,000 mark has now been filled, reinforcing the bullish case for continued upward momentum in the coming months. He also noted that as the market liquidity typically thins during the summer period in the Northern Hemisphere, contributing to more pronounced price swings, downside moves below $100,000 appear less probable than an advance beyond the $110,000 level.

Howard further stressed that current options market data shows significant open interest in call options, reflecting a broadly bullish sentiment. Strikes at $112,000 and $115,000 for the current and upcoming expiry cycles are particularly notable, suggesting traders are positioning for further upside in Bitcoin’s price trajectory. This positive outlook is supported by the growing open interest in bitcoin futures and the broader crypto market, indicating a strong bullish sentiment among investors.