Bitcoin Surges Past $105K as Institutional Demand and Futures Activity Hit New Highs

Bitcoin rallied over 3% on May 20, pushing past $105,500 and peaking at an intraday high of $107,148, as investor sentiment continues to strengthen across both spot and futures markets.

This surge follows a 5% recovery from a low of $102,100 on May 19 and reflects renewed momentum, with key metrics pointing toward sustained upside potential. Let’s break down the main drivers behind today’s price rally.

BTC/USD daily chart. Source: TradingView

Spot Bitcoin ETF Inflows Surge

A significant factor behind Bitcoin’s latest gains is the consistent capital inflow into U.S. spot Bitcoin ETFs, underscoring rising demand for regulated crypto exposure.

Data shows spot ETFs have seen inflows on 18 of the past 21 trading days, adding a total of $6.9 billion over the last three weeks.

Institutional confidence is also on the rise, with $785 million flowing into crypto investment products in the past week — including $557 million into Bitcoin-specific funds, marking the fifth consecutive week of net inflows, according to CoinShares.

Big names are backing the trend:

• Strategy (formerly MicroStrategy) acquired 7,390 BTC (~$765 million) last week.

• Metaplanet of Japa purchased 1,004 BTC (~$129 million), expanding its corporate treasury position.

Spot Bitcoin ETF total cumulative flow. Source: Farside Investors

Bitcoin Futures Market Hits Record Open Interest

Bitcoin’s price rally is also supported by record-high open interest (OI) in the futures market.

Data from CoinGlass shows that BTC futures OI jumped 27% in the past 30 days, reaching an all-time high of $72.63 billion on May 20, up from $57.1 billion in April.

On the Chicago Mercantile Exchange (CME), OI in BTC futures hit a 90-day high of 157,875 BTC, valued at $16.76 billion, signaling aggressive institutional positioning.

This surge mirrors the late 2024 trend, where a rise in OI fueled BTC’s 84% rally from October to its previous peak of $108,000 in December.

Bitcoin OI on all exchanges. Source: CryptoQuant

Bullish Cup-and-Handle Pattern Targets $138K

Technically, Bitcoin is forming a classic cup-and-handle pattern on its daily chart — a bullish setup often followed by significant breakouts.

Since mid-December 2024, BTC has completed a U-shaped recovery (the "cup") and a pullback (the "handle"), now trading just above the handle range and approaching the key neckline resistance at $106,000.

Bitcoin CME futures national OI. Source: CryptoQuant

A confirmed breakout above this neckline could trigger a push toward $109,000, Bitcoin’s all-time high from December 2024. A decisive move beyond that would clear the way toward the technical target of $138,000, representing a potential 31% upside from current levels.

Analysts suggest Bitcoin could even test new highs around $116,000 in the near term if momentum continues.

BTC/USD daily chart. Source: TradingView

Outlook

With rising ETF inflows, record futures activity, and a bullish chart formation in play, Bitcoin appears well-positioned for further upside. As institutional demand strengthens and technical indicators align, BTC may soon break into uncharted territory once again.