- Bitcoin open interest increased by $2 billion in one day.
- Over 3 million Bitcoin returned to profitability.
- Liquidations approached $970 million as prices surged.
Bitcoin’s open interest rose by $2 billion on May 7, 2025, reaching significant levels as BTC neared $96,000 during the FOMC meeting.
Market dynamics highlight renewed speculative interest as Bitcoin’s price escalates, influencing both short-term and long-term investor behavior.
The recent surge in Bitcoin’s open interest and its approach to the $96,000 mark underscore a heightened speculative climate. Glassnode data shows a profitability return for over 3 million BTC holders. Following the rally, Bitcoin surpassed $100,000, triggering approximately $970 million in liquidations across various platforms, contributing to a significant market adjustment. Institutional investors, including BlackRock, have been actively increasing their stakes, with substantial inflows into Bitcoin ETFs, reflecting newfound confidence in the asset. iShares Bitcoin Trust absorbed 5,600 BTC in early May, highlighting the growing institutional involvement and potential impact on broader market stability.
The flows are back in a big way. — Robert Mitchnick, Head of Digital Assets, BlackRock
The recent activities have bolstered profitability profiles for market participants. Despite this, historical data shows that previous spikes in interest often result in short-lived market corrections. Financial impacts are profound as realized market cap rose, signaling entrance of new capital into Bitcoin. Past fluctuations indicate that while rising open interest often forebodes price retracements, the current positive sentiment suggests persistent upward momentum, bolstered by institutional demand and emerging market interest.
