Bitcoin Open Interest Hits $80 Billion Amid Price Volatility

Bitcoin's open interest reached an unprecedented high of $80 billion on May 22, marking a significant milestone in the cryptocurrency market. This surge in open interest, which represents the total number of outstanding derivative contracts, indicates a heightened level of speculative activity and market participation. The increase in open interest was notable as it surpassed the previous peak of $70 billion recorded in late 2024, suggesting a renewed interest in Bitcoin derivatives.
Despite the record-high open interest, the price of Bitcoin briefly dipped below $111,000 on Thursday, sparking concerns about potential volatility or a cool-off period. This price movement highlighted the complex interplay between market sentiment and speculative activity. The relatively low selling pressure compared to previous all-time highs suggested that the market might be experiencing a period of consolidation rather than a full-blown correction. This dynamic could be attributed to the presence of long positions that may be liquidated to drive the price higher, as late longs could face margin calls and forced selling.
According to the liquidation map platform, there was a concentrated leveraged bull at the $108K-$109K and down to $104K area, compared to shorts positions above $111K. This setup suggested that a slight dip in the price of Bitcoin could not be ruled out, potentially leading to a liquidity-driven flush out. However, any brief dip may serve as a springboard for a further rally, based on muted readings from key overheated market indicators.
Switzerland-based trading firm stated the current realized profit (about $3B) was way lower compared to the last December peak ($10B). The firm stated, “Bitcoin just hit a new ATH, and selling pressure is nowhere to be found. No big profit-taking, no panic. Bitcoin may have more room to run.” This analysis suggested that the current market conditions were relatively healthy, with no significant signs of profit-taking or panic selling.
Similarly, Alphractal’s João Wedson painted a healthy market picture based on trading volume by Bitcoin funds. The analyst stated that the past BTC top was flagged when the BTC ETF Fund index tagged a record high. That was yet to be seen despite the new ATH price for BTC, and added, “There is still room for growth before a potential extreme euphoria in this segment.” This analysis indicated that there was still room for growth in the Bitcoin market before reaching a state of extreme euphoria.
When zoomed out on the weekly charts, BTC was about 10% away from tagging the multi-year trendline resistance. In 2023, 2024, and 2025, BTC faced rejection at this level. If history repeats itself, BTC may face another extended correction only after tagging this hurdle (ranging anywhere from $118K to +$130K). This analysis suggested that Bitcoin may face resistance at higher price levels, potentially leading to an extended correction.
Overall, Bitcoin may cool off slightly to shake out late longs between $104K-$108K. But key indicators suggested the asset has an extra ammo to push higher. This analysis indicated that while there may be a brief period of consolidation or correction, the overall trend for Bitcoin remained bullish, with potential for further price increases.

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