The Bitcoin derivatives market continues to evolve, with open interest reaching $96.2 billion. This significant increase compared to previous years creates potential for influencing price dynamics.
Growth of Open Interest in Bitcoin Derivatives
Currently, open interest in Bitcoin derivatives stands at $96.2 billion, significantly higher than in 2022. Although it has fallen from a peak of $114 billion, this level remains substantial. According to Glassnode, the introduction of spot Bitcoin ETFs in January 2024 accelerated this trend, and the volatility of open interest fluctuations has increased markedly since then.
Speculation and Liquidation Risks
The market is currently demonstrating heightened speculative activity, indicating opportunities for sharp price fluctuations. This is associated with increased liquidity, especially on the Binance exchange, where a record trading volume of $1.7 trillion in futures was recorded for May 2025. However, the increased risks of liquidations are also becoming relevant, reminiscent of the events of 2021.
Markers of Future Volatility
Data from CryptoQuant indicates that the BTC-USDT futures leverage ratio concerning open interest is slowly approaching peak values from early 2025. The analysis shows a balance between long and short positions, but the increase in short positions on Binance may indicate potential changes in price dynamics. Analyst Boris Vest noted that in the $100K-$110K range, there is a concentration of short positions which could lead to price movement in the opposite direction.
The increase in open interest in Bitcoin derivatives, along with growing liquidation risks, creates a unique dynamic in the market that could lead to significant price fluctuations in the future.
