Bitcoin’s [BTC] surge to $87.5K recently pushed open interest past $32 billion, setting a new all-time high. This surge in OI signals heightened market activity but also raises the risk of volatility.

While bullish momentum has driven record-long positions, any sharp downturn could trigger liquidations, amplifying price swings.

With Bitcoin at a critical juncture, the balance between sustained buying pressure and a potential unwinding of leveraged positions will determine whether the rally extends or reverses sharply.