Bitcoin’s price hits ATH of $111,000 as Open Interest climbs to $72 billion – Details

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  • Bitcoin’s Open Interest (OI) soars to an unprecedented $74 billion, fueling dreams of endless bull runs
  • The Futures market seems stable, not frothy, a rare moment of grace in the face of rampant speculation

On May 21, Bitcoin’s Open Interest (OI) broke all records, reaching an astounding $74.25 billion, sending waves of optimism across the market. It wasn’t just wishful thinking—soon enough, Bitcoin did what everyone prayed for, climbing to a fresh all-time high of $111,381. Well, someone must be doing something right!

Since April, OI has surged by over $24 billion, a surge reminiscent of a flood of speculative capital filling the markets with promises of prosperity—or doom, depending on your position. That’s the bullish stampede for you, ready to trample the unsuspecting.

And as if that wasn’t enough, BTC has rallied from $76k to $110k in the same time, adding an impressive $34,000 to its price tag. Who wouldn’t be impressed?

But wait—there’s a catch! The meteoric rise isn’t without its pitfalls. The Futures market, with all its leverage (or as I like to call it, “borrowed hope”), has its risks. A market this hot is a perfect place for both excitement and dread to coexist. Will the bubble pop or will it soar even higher?

$1.65 billion BTC shorts at risk

Less than 24 hours ago, a liquidation heatmap revealed that $1.65 billion in leveraged shorts were dangerously placed at $108.5k. As Bitcoin blasted past this level, those shorts began to flounder, submerging like a sinking ship. It’s a reminder that, in this market, it’s not always the bulls you need to fear, but the bears with bad timing.

Now, if Bitcoin decides to take a nosedive below $100k, those bulls with their leveraged bets are in for a rude awakening, potentially losing a jaw-dropping $12.5 billion. It’s a cruel world out there.

Interestingly, despite Bitcoin’s new high, the Futures market wasn’t suffering from an overdose of froth. The Funding Rate heatmap showed a healthy market—no crazy over-leveraging here. Surprising, considering the circus that often follows such monumental highs. But hey, we’ll take it.

For the uninitiated, the funding rate is a little system traders use to align the derivatives market with the actual spot price. Basically, it’s a game of paying fees every 8 hours to keep positions open. A positive funding rate means the bulls are willing to pay up, while a negative one signals a bearish mood.

At press time, BTC’s funding rate was sitting pretty at around 3%, signaling a robust and healthy market. Compare that to the insane 50-100% funding rates of late 2024, and it’s clear: things are much saner now.

In short, the market is still breathing, and Bitcoin could keep pushing towards another all-time high—if it doesn’t get greedy, of course.

And now, for those who like to play by the numbers, Bitcoin is back within the high bands of the MVRV pricing model, a place it frequented in early and late 2024. If history decides to repeat itself (or if it feels like a cruel joke), BTC could swing between $98k-$118k for the next couple of months. Let’s buckle up!

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2025-05-22 07:37