Bitcoin Futures Open Interest Reaches Record $80 Billion Amid Price Surge

Bitcoin futures open interest reached record highs this week, exceeding $80 billion on May 23, a 30% increase since the start of May. This indicates heightened trader activity betting on rising prices.

Key Developments

Open interest in Bitcoin futures stands at over $80 billion, the highest ever recorded.
Traders are increasing positions by borrowing funds, which could lead to forced sales if the market shifts.
Bitcoin ETFs attracted over $2.5 billion in inflows this week, indicating strong institutional demand for actual Bitcoin.
Over $1.5 billion in Bitcoin options bets are placed at strike prices of $110,000 and $120,000, with significant amounts also at $115,000 to $130,000, suggesting expectations for substantial price increases.
Nearly $2.76 billion in Bitcoin contracts are set to expire today, with a put/call ratio of 1.2, indicating slightly more bearish positions.
The max pain level is around $103,000; approaching this level could trigger market volatility.
Bitcoin's spot price neared $112,000, influenced by easing US-China trade tensions and concerns about US debt ratings.

Market dynamics suggest that continued ETF inflows may support prices amid potential risks from crowded futures and options markets, with high volatility expected in the near future.