Bitcoin's futures open interest reached a record $72 billion on May 20, 2025, indicating a significant increase in leverage among institutional investors amid rising demand and US fiscal uncertainties. This surge in open interest comes as $1.2 billion in bearish positions face liquidation risks between the $107,000 and $108,000 price levels. The Chicago Mercantile Exchange leads with $16.9 billion in open interest, followed by Binance at $12 billion. Market analysts speculate that a breakout above the $108,000 threshold could liquidate many short positions, potentially driving Bitcoin to new all-time highs. Macro factors, including high government debt yields and the Federal Reserve’s potential intervention, are prompting investors to consider Bitcoin as an alternative asset. Furthermore, some governments are exploring reallocating a portion of their gold reserves into Bitcoin, which could lead to considerable inflows and further accelerate price increases. As Bitcoin approaches the critical $107,000 mark, short position holders face increased liquidation risks, which could fuel upward momentum in BTC's price.

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