Here’s Why Bitcoin Soared Above $64,000 Last Week, According to Bitfinex

Last week, the Federal Reserve cut its interest rate by 50 basis points, allowing more cash flow into the United States. Two days after the rate cut, the price of bitcoin topped $64,000, reigniting confidence in the market.

According to Bitfinex’s latest weekly report, BTC’s price jump was influenced by increased activities within the futures and perpetual markets rather than the spot market.

What caused Bitcoin’s latest price surge?

The report noted that open interest in bitcoin drove the latest surge rather than spot trading, implying that the futures and perpetual markets saw the most investor participation. Analysts at the exchange added that open interest in the crypto asset “outpaces the price gains of BTC itself.”

According to on-chain data from blockchain analytics platform Coinglass, bitcoin open interest recently hit $34.9 billion, the highest seen since early August.

Analysts at Bitfinex added that greater engagement with the Bitcoin exchange-traded fund (ETF) could push the leading cryptocurrency to recover prices closer to its peak value of $73,800. More than $397.2 million flowed into U.S.-traded spot Bitcoin ETFs last week, showing that the price of BTC can follow the bullish trend.

The market report explained that the leading crypto asset could unlock the $65,200 price resistance from the end of August if this Bitcoin ETF entry trend continues.

“Should Bitcoin breach key resistance levels from late August, this could propel the asset to new highs, coinciding with the low liquidity of late summer. However, without sustained spot buying, consolidation or a partial correction seems the most likely scenario,” analysts said.

Altcoins see price increases

Apart from bitcoin, other crypto assets have seen a considerable increase over the past month. Bitfinex cited SUI and AAVE as altcoins that unlocked a 100% price increase in August and September.

On the other hand, altcoins that do not belong to the top 10 coins by market capitalization have not increased, as revealed in an index that shows the data. Still, open interest in these assets has soared from $10.74 billion in August to $11.48 billion.

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