Bitcoin’s rally to a new all-time high of $111,620 on May 22 was followed by a surge in futures activity, with total open interest (OI) across exchanges reaching $80.91 billion, the highest ever recorded.
May 22 OI represents a $6.66 billion increase over the past 24 hours and caps off a five-day climb that added over $15 billion in futures exposure since May 18.
Such a significant expansion in open interest shows an increase in participation from both institutional and retail traders, with leveraged positions across the market rising in tandem with Bitcoin’s price.
On Binance, the largest derivatives venue by volume, OI hit $13.60 billion, the highest since Dec. 16, 2024. This shows a clear resurgence of speculative positioning on the exchange, which had seen a decline in activity throughout March and April.
Between May 18 and May 22, Bitcoin rose from approximately $103,500 to over $111,000, gaining nearly 8% in five days. Futures OI expanded by more than 23% over the same period, a growth rate that far outpaced spot price appreciation. This divergence suggests spot-driven demand and an influx of leveraged capital, likely driven by momentum traders positioning for continued upside.
While record OI highlights strong market engagement, it also introduces elevated liquidation risk should volatility spike. Given the sharp rise in open contracts without a corresponding cooling-off in price, any abrupt reversal could trigger a cascade of forced liquidations.
The increase in price and OI shows the market entering a new phase of speculative intensity. Whether this translates into sustained higher prices or introduces short-term instability may depend on the ability of bulls to defend the $110,000 level against potential drawdowns.
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