Bitcon hits new all-time high as open interest spikes, retail stays on sidelines

Bitcoin’s open interest rose to $80.91 billion, an all-time high for the metric, suggesting that leverage is driving the latest rally.

Bitcoin’s (BTC) rally to its all-time high of $111,970 was likely fueled by leverage. On Thursday, May 22, open interest on Bitcoin futures across crypto exchanges reached $80.91 billion , the highest level ever recorded.

Exchange BTC futures open interest | Source: CoinGlass

On Binance, the largest exchange by volume of derivative contracts, open interest climbed to $13.60 billion. This is the highest level the metric has reached since December 2024. At the same time, the rally contributed to a spike in liquidations , wiping out a total of $246 million in long and short positions across major crypto assets.

The increase in open interest closely tracked Bitcoin’s price, which rose 8.46% since the start of the week. During that same period, open interest increased by 23%, a significantly higher rate than Bitcoin’s price. This suggests that the rally is being driven by leverage rather than retail interest.

Institutions and retail are driving Bitcoin’s growth

Adding to this narrative is the fact has not seen a significant spike in search interest for Bitcoin. Google Trends reveals a significant decline in search interest for the keyword Bitcoin since November. Specifically, Bitcoin search volume score was at 22, compared to 100 in May 2021, when BTC lost 50% of its value in a matter of weeks.

Even during the November rally, Bitcoin’s search volume score peaked at just 64. This suggests that despite Donald Trump’s victory in the U.S. elections, retail investors are not as engaged as they were during the 2021 crash.

The most likely explanation is that institutional investors are increasingly betting on Bitcoin. Notably, Trump’s election win and subsequent pro-crypto stance have helped legitimize Bitcoin among institutional players—credibility it previously lacked.