Bitcoin open interest hits record high as BTC slips below $111K
Bitcoin futures open interest reached over $80 billion on May 23, marking a 30% increase since early May as traders leverage positions anticipating higher prices. Open interest reflects the total number of unsettled futures contracts, indicating significant market speculation. A surge in open interest suggests many traders are using borrowed funds, which can lead to forced liquidations and increased volatility if prices move unfavorably. Spot Bitcoin ETF inflows exceeded $2.5 billion this week, potentially mitigating some leverage risks. Bitcoin options markets also show high open interest, particularly at strike prices of $110,000 and $120,000. Bitcoin briefly fell below $111,000 after reaching an all-time high of $112,000 on May 22, but has gained nearly 20% year-to-date and almost 50% since a drop to $75,000 on April 7.
