Record Bitcoin Open Interest Signals High Leverage—And Risk

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Bitcoin futures open interest has soared to unprecedented levels, hitting $80 billion as traders pile into leveraged positions. While this reflects bullish sentiment, it also raises the risk of a violent market correction.

Open interest, which tracks active futures contracts, has surged 30% in May alone. Such spikes often indicate excessive borrowing to bet on price movements. If BTC reverses, mass liquidations could fuel a cascading sell-off.

Analysts note that spot Bitcoin ETF inflows—exceeding $2.5 billion this week—could help stabilize the market. But with leverage at record highs, traders should brace for potential turbulence ahead.