Bitcoin futures open interest has soared to an all-time high, signaling a surge in market confidence and growing anticipation of a significant price rally. As of May 23, the total open interest on crypto derivatives platforms surpassed $80 billion—a massive 30% increase since the start of the month.
Market Optimism Driven by Spot ETF Inflows
Much of this bullish momentum appears to be fueled by strong inflows into spot Bitcoin ETFs. Over the past week alone, these funds have attracted more than $2.5 billion, bolstering investor sentiment and helping to offset some of the risk associated with high-leverage trading positions.
The rise in futures open interest shows that traders are increasingly taking large positions using borrowed capital, betting that Bitcoin will soon reach new all-time highs. This influx of capital has injected fresh optimism into the market and reinforced the belief that a major breakout could be imminent.
Bitcoin Options Data Highlights High-Value Targets
The excitement isn’t limited to futures markets. Bitcoin options traders are also showing aggressive bullish behavior. On the Deribit exchange alone, over $1.5 billion in options have been placed at the $110,000 and $120,000 strike prices. In addition, more than $1 billion in further upside bets have been made at even higher strike levels, suggesting widespread belief in continued price acceleration.
Despite this bullish outlook, there’s still considerable activity on the short side. Approximately $2.76 billion in Bitcoin options contracts are set to expire on May 23, with a put-to-call ratio of 1.2—indicating that more traders are hedging against downside risks. The maximum pain point for these expirations is currently at $103,000, where the highest number of losses would occur, suggesting potential price magnetism around that level.
In summary, the current market setup shows strong bullish sentiment among Bitcoin traders, driven largely by ETF inflows and speculative derivatives activity. While the high leverage introduces volatility risks, the growing confidence in a price surge indicates that the crypto market could be on the verge of another explosive move.
