Growing interest in Bitcoin among institutional investors, combined with increasing uncertainty about US fiscal policy, is pushing the world’s largest cryptocurrency to new historic highs. Open interest (the volume of open positions) in Bitcoin futures is reaching record levels. Indicating a massive influx of capital and greater use of leverage. This trend increases the likelihood of a sharp upward price movement, especially if short (bearish) positions are liquidated.
Open interest is growing, bears are under pressure
The volume of open positions (open interest) on Bitcoin futures has reached a record $72 billion. This indicates growing use of leverage, primarily by institutional investors. The largest portion of these futures are traded on the Chicago Mercantile Exchange (CME), followed by Binance.
According to CoinGlass, bearish positions worth USD 1.2 billion are concentrated in the USD 107,000 to USD 108,000 range and are at risk of liquidation. Bitcoin has already surpassed its all-time high of USD 109,000 and is currently trading at USD 110,000.
Macroeconomic tensions support BTC growth
Uncertainty surrounding US fiscal policy and the approaching 5% threshold for 20-year government bond yields are increasing pressure on the Federal Reserve System. The expected intervention by the central bank could weaken the dollar, increasing the attractiveness of Bitcoin as an alternative asset.
While gold has appreciated by 24% this year, its high market capitalization limits further growth. In contrast, bitcoin, with a value of USD 2.1 trillion, still has room for expansion. Some US regions are considering moving part of their gold reserves to BTC, which could significantly increase its price.
