The main dishes to remember:
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Bitcoin Futures Open Interest has reached a record of $ 72 billion, reporting an increase in the use of leverage among institutional investors.
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$ 1.2 billion in shorts from $ 107,000 to $ 108,000 are at risk of liquidation, which increases BTC ratings.
The overall interest open for Bitcoin’s term contracts (BTC) reached a record on May 20, which raises questions about the question of whether the downstream positions are now in danger. Despite the repeated failures to exceed the level of $ 107,000 since May 18, the volume of leverages could propel Bitcoin to a new record of all time.
Total open interest in BTC’s term contracts increased to $ 72 billion on May 20, marking an increase of 8% compared to $ 66.6 billion a week earlier. Institutional demand continues to be a major engine of this leverage, the Mercantile Chicago Exchange (CME) leading to $ 16.9 billion on BTC’s term contract, followed by Binance, which contains $ 12 billion in open interest.
$ 1.2 billion in the Bearish BTC liquidations cluster at $ 107,000 at $ 108,000
According to quince estimates, the largest concentration of BTC Bearish’s long -term liquidation is grouped between $ 107,000 and $ 108,000, for an amount of around $ 1.2 billion.
If it is impossible to predict, which could arouse an escape greater than $ 108,000 to force these leverage shorts to relax, there is an increasing optimism linked to increasing concerns concerning the budgetary debt of the United States. Uncertainty remains on how the government plans to achieve economic growth while reducing spending, in particular in light of the continuous disagreement between democratic and republican legislators.
More importantly, yields on the 20 -year -old American treasure remain almost 5%, compared to 4.82% two weeks earlier. The low long -term public debt request can oblige the American federal reserve to intervene as a buyer of the last resort to maintain market stability, reversing a 26 -month trend. This approach exerts downward pressure on the US dollar and pushes investors to seek alternative coverage strategies, including Bitcoin.
Gold dominates, but bitcoin absorbs the flow in the middle of reserve reacts
Gold remains the dominant alternative asset, but its 24% gains from the start of the year in 2025 and $ 22 billions in market capitalization make it less attractive for many investors. For the context, the entire S&P 500 index is estimated at 53 billions of dollars, while American bank deposits and cash bills (M1) amount to $ 18.6 billions of dollars. On the other hand, Bitcoin currently represents an asset class of 2.1 billions of dollars, of size almost equivalent to money.
Meanwhile, some regions, including the United States, have started to lay the foundations to move parts of its gold reserves in Bitcoin – an action that could easily propel BTC to a new summit of all time. A modest reallocation of 5% from Bitcoin gold by these nations would result in an influx of $ 105 billion, which would be equivalent to 1 million BTC at a price of $ 105,000.
In relation: Bitcoin ready to “spray” shorts once the price discovery more than $ 110,000 begins
For perspective, Strategy, the company listed in the United States led by Michael Saylor, currently has 576,230 BTC. There is no doubt that institutional purchases remain the main catalyst so that Bitcoin exceeds the level of $ 108,000. Such a movement would trigger the liquidation of lever -effects, probably accelerating the push towards a new summit of all time. However, persistent macroeconomic uncertainty continues to weigh on the overall feeling of investors.
While Bitcoin flirts with the $ 107,000 mark, those who occupy short positions are faced with an increased risk of forced liquidations – a result that could further feed the rise.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are alone of the author and do not reflect or do not necessarily represent the views and opinions of Cointelegraph.
