Bitcoin Open Interest Hits $96B, Drops 3.5% as BTC Range-Trades $103.6K–$109.3K
Bitcoin open interest in futures and options climbed to a record $96.2 billion, propelled by spot Bitcoin ETF launches and elevated speculative leverage—the Realized Cap Leverage Ratio is now in the top 10.8% of days since 2018. A shift to stablecoin-margined collateral, led by USDT, has helped cushion volatility. Binance Futures saw a record $1.7 trillion in May trading volume, boosting liquidity and engagement. However, open interest then fell by 3.5%, signifying a moderate reduction in leveraged positions rather than a full exit. BTC is trading around $105,910 within a $103,600 support and $109,300 resistance range, with 50-, 100- and 200-day SMAs sloping up. Macro headwinds—rising US Treasury yields, steady Fed rates and geopolitical tensions—are damping bullish momentum. Traders should monitor leverage metrics, collateral trends and technical breakouts: a move above $109,300 could reignite gains, while a drop below $103,600 risks testing the $95K–$98K zone.
Neutral
The initial surge in Bitcoin open interest to $96.2 billion signaled strong bullish momentum driven by ETFs and speculative leverage, while the subsequent 3.5% drop reflects cautious deleveraging rather than broad liquidation. BTC’s range-bound trading between key technical levels, paired with macro headwinds, suggests limited directional bias in the short term. Traders are likely to stay on the sidelines until a clear breakout above $109,300 or breakdown below $103,600 occurs. Over the longer term, sustained ETF inflows and growing stablecoin collateral usage could support gradual upside, but geopolitical and rate-related risks may keep volatility in check.