Bitcoin Hits Record $111K, Correction May Follow
Key Takeaways
- On May 22, 2025, Bitcoin reached a new all-time high of $111,980 USD.
- Open Interest (OI) in the derivatives market rose to $74 billion USD – a record high.
- Declining spot demand and high liquidation levels below $100,000 USD suggest a potential correction.
- A short-term drop to $100,000 or even $93,000 USD is conceivable.
Bitcoin: Between Rally and Pullback
Bitcoin has been making headlines in recent days. On May 22, 2025, the price on Binance surged to a new all-time high of $111,980 USD. At the same time, Open Interest in the derivatives market reached a record level of $74 billion USD. This indicates that many traders are betting on rising prices – not via the traditional spot market, but through futures and other derivatives.
Derivatives Market Dominates – Spot Market Lags Behind
While the derivatives market is booming, demand in the spot market remains subdued. Data from CryptoQuant shows that spot market trading volume is decreasing. This means fewer investors are buying Bitcoin directly. Instead, many are speculating on rising prices through leveraged positions. This can lead to short-term volatility – especially if market sentiment shifts.
Liquidation Levels Could Trigger Price Drop
According to Coinglass, significant liquidation levels have formed below the $100,000 USD mark. These occur when traders open leveraged long positions that are automatically closed if the price drops. Such zones often attract price movement due to high liquidity. Notably, the areas around $100,000 and $92,000 USD are considered potential targets for a correction.
Chart Analysis: Possible Range Formation
A look at the daily chart shows that Bitcoin may be entering a sideways movement. After the pullback to $77,500 USD in March and the subsequent recovery, liquidation levels formed at $99,600, $108,000, and $113,000 USD. The first two have already been “cleared.” This suggests that the current rally may be losing momentum – especially if spot demand remains weak.
What Does This Mean for You as a Trader?
If you’re trading Bitcoin, you should expect increased short-term volatility. The combination of high speculation in the derivatives market and weak spot market demand is a warning sign. A pullback to $100,000 or even $93,000 USD cannot be ruled out. Pay close attention to your risk management and monitor liquidity zones carefully.
Our Assessment
The current Bitcoin market environment is tense. While sentiment remains generally bullish, the lack of support in the spot market and the concentration of liquidation levels below the $100,000 USD mark point to a possible correction. Long-term investors should remain calm. However, short-term traders should be prepared for potential pullbacks and secure their positions accordingly.
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Sources
- Coinalyze
- CryptoQuant
- Coinglass
- TradingView
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 107756 |
| 24h % | -2.29 % |
| 7d % | -1.56 % |
| 30d % | 14.92 % |
| 60d % | 31.15 % |
| 1y % | 59.23 % |
| Market Cap | $2,141,079,851,392.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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