#BTC

The open interest in Bitcoin futures has reached a new record, exceeding $80 billion, while the price of the currency has dropped below $111,000 amid a wave of high speculation.

When open interest rises significantly, it indicates a massive number of leveraged positions, where traders hold large positions using borrowed funds. If the price moves against these excessive positions, it could lead to forced liquidations, imposing sharp selling pressure and causing significant price fluctuations.

The Bitcoin options market is showing a similar pattern, with Deribit data indicating open interest of over $1.5 billion at strike prices of $110,000 and $120,000, along with more than $1 billion at strike prices of $115,000, $125,000, and $130,000.

Bitcoin options with a nominal value of $2.76 billion are set to expire on May 23, with a Put/Call ratio of 1.2%, indicating a greater number of short sellers (put options) compared to call options. The "max pain" point, where the largest losses occur at settlement, is at the level of $103,000.