As if nothing had happened, the BTC has just resumed its Haussier rally. After a disturbing fall this winter, the King of Cryptos returns not only to his December 2024 record at 108,000 dollars, but easily exceeds him to reach a new ATH at 111,000 dollars. This record has created an excitement among traders who have opened a record number of positions.
In short
- BTC reaches a new summit at $ 111,000 after five weeks increase, easily exceeding its previous December ATH.
- The effervescence of traders pushes open interest to a record of $ 80 billion, but long positions risk a brutal correction.
- Massive influx to the Bitcoin ETF with $ 934 million in net entries in one day, including $ 877 million just for BlackRock.
Back on the BTC spring rebound
After reaching an ATH at $ 108,000 in December and approached it again in January, the BTC price experienced a significant drop this winter. With a local Bitcoin bottom at $ 76,000 in early April, the Crypto market experienced difficult months, a striking contrast with the time when 10,000 BTC were enough to buy two pizzas.
Despite the uncertainties of the global geopolitical situation and the consequences of the war of customs tariffs led by Donald Trump, the BTC has taken up an upward trend for more than a month. After five consecutive weeks of increase, the December ATH was reached this week. But far from resistance to the increase in the BTC, this summit was easily exceeded to reach $ 111,000 yesterday. Even if the BTC underwent a slight correction, The record level of open interest observed in the term markets Indicates that the BTC probably did not reach the final summit of this cycle.
The madness of traders
The approach of this new summit, of course, woke up the appetite of traders after these months of gloom. Being expecting a suite of the increase, they opened long positions on the bitcoin while the shorts were gradually liquidated. The Open Interest, which measures the overall value of positions in the long term, has also reached a record with a value of $ 80 billion according to Coinglass. There has therefore been a 30% increase in open interest since early May, which shows the effervescence of traders.
This madness which has taken hold of the market around Bitcoin can have consequences on its course. If a liquid drop too quickly long, there is a risk of having a vicious circle which makes the price of bitcoin go even more.
Indeed, contracts worth around 2.76 billion dollars must expire on May 23, with a 1.2 %ratio, which means that there is more shorts than long with a maximum of 103,000 dollars, which could be the stop of this spiral if the bitcoin continued its correction.
A request supported by the ETF
Even if the explosion of derived contracts on Bitcoin weakens its course, demand in ETF has the opposite effect and will be able to stabilize the price of the BTC. Indeed, Thursday, May 22 was a record day for ETF with 934 million net entries.
Blackrock continues to dominate this market since it is its Ibit (Ishares Bitcoin Trust ETF fund) which concentrates the large part of these entries with 877 million and has accumulated $ 47.55 billion since the start of its rating in January 2024.
While remaining much lower than that of the BTC, the ETHEREUM market also had a very nice day yesterday with $ 110 million in net entries.
After a new record yesterday, the BTC experienced a slight correction up to $ 108,000, liquidating more than 300 million long positions this morning. For the moment, the former ATH seems to resist the pressure of shorts, which could make it a new medium to use the upward trend next week.
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