Bitcoin futures open interest has surged to over $80 billion, marking a 30% increase as traders engage in leveraged speculation, anticipating further price increases. Open interest reflects the total number of outstanding contracts ready for settlement, indicating significant market speculation. However, a rise in open interest can lead to increased volatility if prices move unfavorably for highly leveraged positions, forcing liquidations and adding selling pressure on Bitcoin. Despite open interest upswing, there are considerable inflows into spot Bitcoin ETFs totaling over $2.5 billion this week, potentially mitigating some leverage impact. Concurrently, Bitcoin recently slipped below $111,000 after briefly hitting an all-time high of $112,000 on May 22, continuing to trade around that threshold. Over the past year, Bitcoin has risen nearly 20%, recovering from a dip to $75,000 in early April. Analysts note that $2.76 billion in options contracts will expire soon, with a put/call ratio suggesting more bearish sentiment in the market.

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