🔥The open interest of Bitcoin futures contracts has reached a record high of 72 billion USD, indicating an increase in leverage usage by institutional investors. Among them, the CME exchange dominates with 16.9 billion USD, followed by Binance with 12 billion USD. The 8% increase in just one week reflects market sentiment expecting BTC to soon break out to new high prices.

Notably, there are up to 1.2 billion USD in short positions 'stuck' around the price range of 107,000–108,000 USD. If BTC breaks through this threshold, these positions could be liquidated en masse, creating a domino effect that drives the price up sharply. Although BTC has not yet breached this resistance level, pressure from high-leverage positions is increasing the potential for a price explosion.

Part of the momentum comes from fiscal instability in the US, with concerns about how the government will balance economic growth and spending cuts, amid deep divisions among the parties. The yield on 20-year government bonds has risen to nearly 5%, reflecting weak demand for long-term debt, forcing the Fed to potentially intervene, leading to a weaker USD and increasing demand for hedge assets like Bitcoin.

While gold remains a safe haven, the 24% increase since the beginning of the year and its enormous market cap (22 trillion USD) make it less attractive to some investors. In contrast, Bitcoin, with a market cap of 2.1 trillion USD, is attracting new capital flows, especially with signals that some countries like the US may be considering moving a portion of their gold reserves into Bitcoin. If only 5% of global gold reserves were converted to BTC, the market could see an inflow of 105 billion USD equivalent to 1 million BTC at a price of 105,000 USD.