Bitcoin continues its rapid ascent, breaking past the $118,000 mark and setting new records for Open Interest (OI) – the total value of outstanding futures contracts – in the derivatives market. This unprecedented surge led to over $1.25 billion in liquidations in a single day, with the lion’s share – about 90% – coming from short positions. This means traders who bet on a price decline suffered huge losses.

The record OI, which surpassed $177 billion for the entire crypto market (with $78.6 billion attributable to BTC alone), indicates extremely high trader activity and their extensive use of leverage. This situation makes the market highly sensitive to any price fluctuations, as even small movements can trigger further significant liquidations.