Bitcoin Open Interest Hits $96 Billion, Bullish or Bearish?
Bitcoin's derivatives market has an open interest of $96.2 billion, significantly higher than 2022 levels, despite a decline from a peak of $114 billion. The introduction of US spot Bitcoin ETFs in January 2024 has increased market volatility, particularly in leveraged trades. The Realized Cap Leverage Ratio stands at 10.2%, indicating heightened speculative activity as Bitcoin approaches all-time highs, potentially driving prices past resistance levels of $111,800. Binance recorded $1.7 trillion in futures trading volume in May 2025, reflecting strong market speculation. However, the risk of cascading liquidations remains, reminiscent of the 2021 crash. Since the 2022 FTX collapse, stablecoin-margined collateral has surpassed crypto-margined positions, reducing collateral volatility. The BTC-USDT futures leverage ratio is rising, indicating concerns about market leverage. Traders are balanced between long and short positions, with many leaning towards shorts in the $100K–$110K range, suggesting potential for price movement in the opposite direction.
