Bitcoin open interest hits all-time high as bulls flock to new BTC highs

Author: Marcel Pechman, CoinTelegraph; Compiler: Baishui, Golden Finance

Summary

• Bitcoin futures open interest hit a new high of $72 billion, indicating that leverage use among institutional investors is rising.

• Short positions worth $1.2 billion (position prices between $107,000 and $108,000) are at risk of liquidation, increasing the likelihood of a BTC breakout.

Bitcoin’s total open interest

On May 20, total open interest in Bitcoin futures soared to a record high, raising questions about whether short positions are at risk. Although Bitcoin prices have repeatedly failed to break through the $107,000 mark since May 18, the sheer size of leveraged positions could drive Bitcoin prices to new all-time highs.

Bitcoin futures total open interest (USD). Source: CoinGlass

On May 20, BTC futures total open interest climbed to $72 billion, up 8% from $66.6 billion a week ago. Institutional demand continues to be the main driver of leverage, with CME leading the way in BTC futures total open interest at $16.9 billion, followed by Binance with $12 billion.

$1.2 billion in bearish BTC liquidations concentrated between $107,000 and $108,000

According to CoinGlass estimates, the largest amount of bearish BTC futures liquidations is concentrated between $107,000 and $108,000, with a total of about $1.2 billion.

Bitcoin futures leverage heat map, unit: million US dollars. Source: CoinGlass

While it is impossible to predict what factors could trigger gold prices to break through $108,000 and force leveraged shorts to close their positions, market optimism is growing amid concerns about the growing U.S. fiscal debt. Uncertainty remains over how the government plans to grow the economy while cutting spending, especially amid ongoing disagreements between Democratic and Republican lawmakers.

What’s more, the 20-year Treasury yield remains close to 5%, up from 4.82% two weeks ago.Weak demand for long-term government bonds could force the Federal Reserve to step in as a buyer of last resort to maintain market stability, reversing a 26-month trend. Such an approach would put downward pressure on the dollar and prompt investors to seek alternative hedging strategies, including Bitcoin.

Gold dominates, but Bitcoin soaks up funds in reserve reallocation.

Gold remains the leading alternative asset, but its 24% year-to-date gain in 2025 and $22 trillion market cap make it less attractive to many investors. By comparison, the entire S&P 500 has a total market cap of $53 trillion, while the total market cap of U.S. bank deposits and Treasury bills (M1) is $18.6 trillion. By comparison, Bitcoin currently represents a $2.1 trillion asset class, roughly the same size as silver.

Meanwhile, some regions, notably the United States, have already begun preparing to convert some of their gold reserves into Bitcoin — a move that could easily push the price of Bitcoin to a new all-time high. A modest allocation of just 5% of these countries’ gold reserves to Bitcoin would bring in $105 billion in inflows, equivalent to buying 1 million Bitcoins at $105,000.

For perspective, Strategy, a US-listed firm led by Michael Saylor, currently holds 576,230 Bitcoins. There is no doubt that institutional investors remain the main catalyst for Bitcoin to break through the $108,000 mark.Such a move would trigger the liquidation of highly leveraged short positions and could accelerate Bitcoin to a new all-time high. However, ongoing macroeconomic uncertainty continues to weigh on overall investor sentiment.

As Bitcoin approaches the $107,000 mark, investors holding short positions face a higher risk of forced liquidation – which could further drive prices higher.