Last week, the Federal Reserve reduced its interest rate by 50 basic points, allowing increased cash flow in the United States. Two days after the rate reduction, bitcoin’s price surged past $64,000, reigniting confidence in the market.
According to Bitfinex’s latest weekly report, the jump in BTC price was influenced by increased activities within the futures and perpetual markets rather than the spot market.
What Triggered Bitcoin’s Latest Price Surge?
The report noted that bitcoin’s open interest drove the latest surge instead of spot trading, implying that the futures and perpetual markets saw the most investor engagement. The exchange’s analysts added that the crypto asset’s open interest “outpaced the price gains of BTC itself.”
According to on-chain data from the blockchain analytics platform Coinglass, bitcoin’s open interest recently attained $34.9 billion, the highest seen since early August.
Bitfinex analysts added that an increased engagement with the spot Bitcoin exchange-traded fund (ETF) could drive the leading cryptocurrency to reclaim prices closer to its peak value of $73,800. Over $397.2 million flowed into the U.S.-traded spot Bitcoin ETFs in the past week, proving that BTC price may follow in the uptrend.
The market report explained that the leading crypto asset could unlock the $65,200 price resistance from late August if this trend of Bitcoin ETF inflows continues.
“Should Bitcoin breach the key resistance levels from late August, this could propel the asset towards new highs, coinciding with the end of summer’s low liquidity. However, without sustained spot buying, consolidation or a partial correction seems the most likely scenario,” the analysts said.
Altcoins See Price Increases
Aside from bitcoin, other crypto assets have seen considerable increment within the past month. Bitfinex referenced 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 showing the data. Still, open interest in these assets has soared from $10.74 billion in August to $11.48 billion.