Traders Pile In: Bitcoin Open Interest Hits All-Time High As Price Nears $112K
Bitcoin futures open interest reached a record high of over $80 billion on May 23, increasing approximately 30% since May 1. Traders are heavily investing in contracts betting on rising prices, often using borrowed funds. Spot Bitcoin ETFs attracted over $2.5 billion in inflows this week, indicating significant institutional buying of actual Bitcoin, which stabilizes the market. Bitcoin options open interest also surged, with over $1.5 billion in bets at strike prices of $110,000 and $120,000. Nearly $2.76 billion in Bitcoin contracts are set to expire today, with a put/call ratio of 1.2, indicating more bets on price drops. Bitcoin's spot price reached around $111,150, driven by easing US-China trade tensions and a downgrade of US sovereign debt. Future market volatility is anticipated, with ETF demand potentially counterbalancing risks from crowded futures and options markets.
