Bitcoin Record High: Open Interest Rises, Retail Stays Away

Bitcoin Hits Record High As Open Interest Rises, Retail Stays On The Sidelines!

23 May 2025 at 07: 29

Reading time: 2 minutes

The open interest of Bitcoin rose to a whopping $80,91 billion, a record high that indicates the recent rally is largely driven by leverage.

The Rise of Bitcoin (BTC) to an all-time high of $111.970 appears to have been driven largely by heavy leverage. On Thursday, May 22, open interest in Bitcoin futures on crypto exchanges reached an unprecedented $80,91 billion, a level never before recorded.

At Binance, the largest derivatives exchange, open interest reached $13,60 billion, the highest value since December 2024. At the same time, the rally has led to a significant increase in liquidations, with a total of $246 million worth of long and short positions in major crypto assets evaporating.

The increase in open interest closely follows the price action of Bitcoin, which has risen by 8,46% since the start of the week. During the same period, open interest increased by a whopping 23%, a much higher growth than the increase in Bitcoin’s price. This clearly indicates that this rally is driven by leverage rather than retail investor interest.

Institutional and retail shareholders fuel Bitcoin's growth

Another notable aspect of this situation is the lack of a significant increase in search interest for Bitcoin. Google Trends shows that search interest for the keyword Bitcoin has dropped significantly since November. For example, the search volume score for Bitcoin was 22, compared to 100 in May 2021, a period in which BTC dropped in value by 50% in a matter of weeks.

Even during the November rally, Bitcoin's search volume score only reached 64. This suggests that despite Donald Trump's victory in the US election, retail investors are less engaged than during the 2021 crash.

The most logical explanation for this is that institutional investors are increasingly betting on Bitcoin. It is therefore undeniable that Trump’s victory and his subsequent pro-crypto stance are increasingly legitimizing Bitcoin among institutional players, something it previously lacked in credibility.

“Let’s face it, the crypto world is as volatile as the weather – always changing and never predictable!”

If Bitcoin makes its way to new heights, we can prepare for an exciting time for the entire crypto market. How will you position yourself in this dynamic world?

Frequently Asked Questions

What is open interest in the context of Bitcoin futures?
Open interest refers to the number of open contracts for Bitcoin futures trading, which indicates how much capital has been allocated to the market.

Why is high open interest important?
High open interest can indicate increased investor activity and interest, often driven by leverage, which can result in price movements.

How do institutional investors influence the Bitcoin price?
Institutional investors bring large capital into the market, which often leads to greater stability and credibility for Bitcoin, and their involvement can positively influence the price.

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