The crypto market is heating up again—at least in the derivatives arena. Bitcoin futures open interest has surged to an all-time high, even as the flagship cryptocurrency’s price took a brief dip below the $111,000 mark.
According to data from CoinGlass, Bitcoin open interest (OI) across crypto derivatives exchanges soared past $80 billion on May 23, marking a dramatic 30% jump since the start of the month. This surge is a clear signal that leveraged traders are doubling down, placing increasingly large bets on the belief that Bitcoin is primed to reach fresh all-time highs.
Open interest refers to the total number of outstanding futures contracts that haven’t yet been settled. It offers a snapshot of the current level of speculation in the market. When OI rises quickly—as it has this month—it typically indicates that traders are aggressively using leverage, amplifying both their potential gains and their risks.
But this much leverage in the system can be a double-edged sword. If Bitcoin’s price starts to move against these positions, it could trigger a cascade of forced liquidations. This happens when traders’ collateral can no longer support their borrowed positions, forcing them to sell off en masse, which in turn drives prices down even further in a self-perpetuating cycle. Such events have historically led to sharp price drops and heightened market volatility.
Interestingly, while the futures market is frothing with speculative energy, inflows into spot Bitcoin ETFs are providing a stabilizing counterforce. More than $2.5 billion in ETF investments have poured in this week alone, indicating strong institutional interest and potentially helping to balance out the speculative frenzy in derivatives markets.
Over on the options side, the story is similar. According to Deribit data, open interest in Bitcoin options is concentrated heavily at the $110,000 and $120,000 strike prices, with more than $1.5 billion locked in those levels. Additional heavy positioning exists at $115K, $125K, and $130K, suggesting that traders are eyeing a broad range of bullish targets for BTC in the near term.
One key data point to watch is the upcoming May 23 expiry for Bitcoin options contracts. More than $2.76 billion worth of notional value is set to expire, with a put/call ratio of 1.2, signaling that there are more bearish (put) bets than bullish (call) ones. The max pain point—the price at which the greatest number of option holders would lose money—is pegged at $103,000.
In the spot market, Bitcoin has experienced some turbulence. After briefly touching a new all-time high of $112,000 on May 22, BTC pulled back slightly and was seen trading just under $111,000 on Coinbase by early morning UTC on May 23. While the dip might seem minor, it reflects the precarious balance between bullish momentum and leverage-fueled vulnerability.
Despite the slight decline, Bitcoin’s year-to-date performance remains strong. The asset has surged nearly 20% since January and has rebounded by almost 50% from its April 7 low of $75,000, which followed a sharp selloff sparked by former President Donald Trump’s surprise announcement of sweeping global tariffs.
As Bitcoin navigates this high-stakes environment—fueled by a cocktail of speculative futures bets, options positioning, and institutional spot flows—the next few weeks are likely to be volatile. Traders and investors alike should buckle up: the market seems poised for some serious moves, whether up or down.
