Bitcoin futures open interest hits record $720M, signaling rising use of leverage among institutional investors.

This article explores the record high in Bitcoin (BTC) futures open interest, raising questions about whether bearish positions are now at risk.

The aggregate open interest in Bitcoin (BTC) futures soared to a record high of $72 billion on May 20, converging with the cryptocurrency's persistent attempts to breach the $107,000 level.

Despite repeated failures to break above the $107,000 mark since May 18, the sheer volume of leveraged positions could propel Bitcoin to a new all-time high.

Bitcoin futures open interest

The total open interest in BTC futures rose to $72 billion on May 20, showcasing a 8% increase from $66.6 billion just a week earlier.

This institutional demand is being channeled largely through the Chicago Mercantile Exchange (CME), where open interest in BTC futures reached $16.9 billion.

Coming in second is Binance, which holds $12 billion in open interest, while smaller exchanges like FTX and Huobi contribute to the remaining open interest in BTC futures.

$1.2 billion in shorts at risk of liquidation

According to CoinGlass estimates, the largest concentration of bearish BTC futures liquidations is clustered between $107,000 and $108,000.

The liquidations at those price levels add up to approximately $1.2 billion.

The price of BTC dropped to as low as $106,600 on May 19 before rebounding to $107,300 at the time of writing.

It remains unclear what could spark a breakout above $108,000 to force those leveraged shorts to unwind, but there is growing optimism tied to rising concerns over United States fiscal debt.

Uncertainty remains about how the government plans to achieve economic growth while reducing spending, especially in light of ongoing disagreement between Democratic and Republican lawmakers.

More importantly, yields on the 20-year US Treasury remain close to 5%, up from 4.82% two weeks earlier.

Weak demand for long-term government debt may compel the US Federal Reserve to step in as the buyer of last resort to maintain market stability, reversing a 26-month trend. This approach puts downward pressure on the US dollar and drives investors to seek alternative hedging strategies, including Bitcoin.

Gold dominates, but Bitcoin absorbs flow amid reserve reallocations

Gold remains the dominant alternative asset, but its 24% year-to-date gains in 2025 and $22 trillion market capitalization make it less attractive to many investors.

For context, the entire S&P 500 index is valued at $53 trillion, while US bank deposits and Treasury bills (M1) amount to $18.6 trillion. In contrast, Bitcoin currently represents a $2.1 trillion asset class, roughly equivalent in size to silver.

Meanwhile, some regions, notably the US, have begun laying the groundwork to shift portions of their gold reserves into Bitcoin—an action that could easily propel BTC to a new all-time high.

A modest 5% reallocation from gold into Bitcoin by those nations would translate into a $105 billion inflow, equivalent to 1 million BTC at a price of $105,000.

For perspective, Strategy, the US-listed firm led by Michael Saylor, currently holds 576,230 BTC.

There is little doubt that institutional buying remains the primary catalyst for Bitcoin to break above the $108,000 level. Such a move would trigger the liquidation of heavily leveraged bearish positions, likely accelerating the push to a new all-time high. However, persistent macroeconomic uncertainty continues to weigh on overall investor sentiment.