On May 23, Bitcoin (BTC) briefly dropped below the $111,000 mark, while leveraged speculation in crypto derivatives markets surged to new highs. According to data from CoinGlass, open interest (OI) in BTC futures across crypto exchanges surpassed $80 billion, reaching a new all-time high.

Open interest has risen approximately 30% since the beginning of May, reflecting a sharp increase in leveraged positions. OI represents the total number of outstanding futures contracts that have not yet been settled or closed. A spike in OI indicates heightened market speculation and liquidity—but also a growing risk of liquidation should prices move against those heavily leveraged positions.

Analysts note that if BTC prices drop further, the resulting forced liquidations could create additional downward pressure and volatility.

Meanwhile, spot Bitcoin ETFs have seen over $2.5 billion in net inflows this week, which may help offset some of the risks tied to excessive leverage.

In the options market, data from Deribit shows more than $1.5 billion in open interest for strike prices at $110,000 and $120,000. Additionally, open interest for strike levels at $115,000, $125,000, and $130,000 has also exceeded $1 billion each.

Roughly $2.76 billion in notional value of BTC options are set to expire on May 23. The current put/call ratio stands at 1.2, suggesting a higher volume of put positions. The Max Pain Price is estimated at $103,000, where the majority of options buyers are expected to incur losses.

According to TradingView data, Bitcoin's spot price on Coinbase briefly fell below $111,000 at 4:15 AM UTC on May 23. Just one day earlier, on May 22, BTC hit a new all-time high of $112,000.

Year-to-date, BTC has gained nearly 20%. Since its April 7 dip to $75,000—following the announcement of global tariffs by U.S. President Donald Trump—Bitcoin has risen nearly 50%.
 

 — AccGn News Team