Bitcoin Futures Open Interest Hits New High, Boosting Price Speculation

Bitcoin’s futures open interest reaches a record of $72 billion, supported by institutional demand. With $1.2 billion in short positions vulnerable at the $107,000-$108,000 level, potential liquidations could increase the price momentum. Macro pressures, including rising Treasury yields and possible shifts from gold to Bitcoin, are also influencing market dynamics.

Bitcoin’s futures open interest surged to a staggering $72 billion on May 20, marking a significant increase from $66.6 billion the previous week. This uptick showcases a growing appetite for leveraged positions, particularly among institutional investors. Notably, the Chicago Mercantile Exchange (CME) leads the charge with $16.9 billion in open interest, followed closely by Binance at $12 billion. All of this suggests a bullish sentiment surrounding Bitcoin’s price prospects.

Crucially, around $1.2 billion in short positions are precariously perched at the $107,000 to $108,000 mark. With this much capital at risk of liquidation, the likelihood of a breakout could be heightened. As price movement has stalled around the $107K level since May 18, one wonders what might trigger a surge above that threshold. Many are watching anxiously as macroeconomic factors weigh in, particularly surrounding the US government’s fiscal challenges.

Tied to all of this is the pressure on US Treasury yields, which hover near 5%, up from 4.82% just a fortnight ago. Investors’ lack of interest in long-term government debt could prompt the Federal Reserve to intervene as a stabilizing force, potentially reversing two years of trends. This possible shift may encourage investors to turn to alternative assets, Bitcoin included, as a safeguard against volatility in traditional markets.

Interestingly, despite gold’s dominance—touted as the go-to alternative asset with a market cap of around $22 trillion and impressive 2025 gains—Bitcoin is nurturing its own appeal. Many savvy investors are reconsidering allocations, eyeing the potential for Bitcoin to absorb flows as reserve reallocations take place. Just a 5% shift from gold into Bitcoin could infuse the market with approximately $105 billion, equivalent to about 1 million BTC at a price of $105,000.

Meanwhile, firms like Strategy, led by Michael Saylor, demonstrate the kind of institutional buying that could help push Bitcoin through that critical $108,000 barrier. Holding an impressive 576,230 BTC, their participation reflects a broader trend. If Bitcoin does manage a breakout above this key level, it could lead to a significant liquidation of short positions, fuelling a rapid ascent into uncharted territory.

As Bitcoin hovers around the $107,000 mark, traders with short positions should be on alert. Forced liquidations are a real possibility, and such events could certainly contribute to a rapid price movement upwards. The economic climate remains uncertain, but as we see, the interplay of institutional interest and market dynamics might just create the conditions for Bitcoin to ascend to yet another all-time high.