Bitcoin futures open interest hits $80 billion, marking a new all-time high.

On May 22, Bitcoin reached a remarkable peak of $111,620, leading to a notable rise in futures trading activity. Open interest (OI) across various exchanges soared to $80.91 billion, marking the highest level ever recorded.

The OI for May 22 reflects a substantial increase of $6.66 billion within a single day, concluding a five-day ascent that added more than $15 billion in futures positions since May 18.

This remarkable growth in open interest indicates increased participation from both institutional and retail investors, with leveraged positions rising alongside Bitcoin’s price movement.

At Binance, the premier derivatives exchange, OI climbed to $13.60 billion, the highest since December 16, 2024. This resurgence signifies a renewed speculative interest, countering the lower activity observed in March and April.

From May 18 to May 22, Bitcoin’s value increased from around $103,500 to upwards of $111,000, achieving nearly an 8% rise in just five days. During this same timeframe, futures OI expanded by over 23%, significantly outpacing the increase in spot prices. This discrepancy suggests a demand primarily driven by spot trading and the influx of leveraged investments, likely propelled by momentum traders planning for further upward movement.

Despite record open interest signaling heightened market activity, it simultaneously increases the risk of liquidations if volatility surges. The significant rise in open contracts without a concurrent price stabilization suggests that any sudden downturn could lead to a series of forced liquidations.

The simultaneous uptick in both price and OI indicates that the market is stepping into a new phase characterized by speculative fervor. Whether this results in sustained higher prices or induces short-term volatility may hinge on the capability of bullish traders to uphold the $110,000 mark amid possible retracements.