Bitcoin Open Interest Breaks Through All-Time High Zone...Is a Leverage Bomb About to Explode?

▲ Bitcoin (BTC)

Bitcoin (BTC) open interest has reportedly surpassed the peak level formed during its all-time high in 2025. With positions rapidly increasing in the futures and perpetual contracts markets, an analysis suggests that the Bitcoin market is on the verge of a major price movement.

On May 10, NewsBTC reported, citing an analysis by Darkfost, a CryptoQuant certified author, that Bitcoin derivative activity is showing the strongest open interest expansion since 2026. Darkfost explained that the current Bitcoin market is still heavily influenced by the futures market, and the recent bullish trend also stems from investors re-entering the derivatives market.

Notably, despite funding rates largely remaining in negative territory for several weeks, open interest has seen its strongest increase this year. NewsBTC pointed out that the current surge in open interest is already greater than the expansion observed during Bitcoin's previous all-time highs.

By exchange, Binance still accounted for most of the capital in the derivatives market. According to NewsBTC, Binance recorded approximately 34% of the total market share, with its monthly average surging to about $2.5 billion on May 5. Gate.io also showed records of $1.75 billion, and Bybit recorded approximately $1.15 billion.

Darkfost analyzed that compared to the defensive market environment at the beginning of this year, recent data indicates a gradual recovery of market optimism. He explained that open interest has grown rapidly as investors increased their risk exposure. However, a market structure with increased reliance on leverage also heightens vulnerability. He pointed out that leveraged positions are difficult to maintain for long periods, and liquidations can significantly amplify volatility and market risk.

In terms of price, maintaining key support levels was presented as crucial. Crypto trader Max Trades analyzed that Bitcoin is currently in a critical retest zone after breaking through previous highs earlier this week. He stated that this zone acts as a key support, and buying pressure needs to hold above this zone to continue the uptrend.

As long as Bitcoin maintains support above the reclaimed price range, the possibility of recovering liquidity near the $82,800 high could increase. Conversely, if it falls back below the retest zone, the bullish structure could weaken, and market attention might shift to the next major downside liquidity zone between $75,000 and $76,000, according to the analysis.

NewsBTC reported that Bitcoin was trading at $80,229 at the time of writing. This surge in open interest signals a strong recovery in participation in the Bitcoin market, but at the same time, it also increases the potential for drastic volatility due to leverage liquidations.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*