Coin Circle News Report:
Last week, the Federal Reserve lowered interest rates by 50 basis points, thereby increasing cash flow in the United States. Two days after the rate cut, the price of Bitcoin surged to over $64,000, reigniting market confidence.
According to the latest weekly report from Bitfinex, the rise in BTC price was influenced by increased activity in the futures and perpetual markets, rather than the spot market.
What caused the recent surge in Bitcoin price?
The report points out that the surge in Bitcoin was driven by open interest in futures contracts, rather than spot trading, indicating that futures and perpetual markets attracted the most investors. Analysts at the exchange added that open interest in crypto assets “exceeded the price increase of BTC itself.”
According to on-chain data from the blockchain analysis platform Coinglass, open interest in Bitcoin recently reached $34.9 billion, the highest level since early August.
Bitfinex analysts further added that increased exposure to Bitcoin exchange-traded funds (ETFs) in spot trading could push the leading cryptocurrency’s price back up to near its peak of $73,800. Over $397.2 million has flowed into US-traded spot Bitcoin ETFs in the past week, proving that Bitcoin prices could follow an upward trend.
The market report explains that if the trend of inflows into Bitcoin ETFs continues, this leading crypto asset could break the $65,200 price resistance starting from the end of August.
Analysts stated, “If Bitcoin breaks through the key resistance level by the end of August, it could push the asset to new highs, consistent with low liquidity at the end of summer. However, without sustained spot purchases, consolidation or partial correction seems more likely.”
Altcoin prices rising
In addition to Bitcoin, other crypto assets have also experienced significant growth in the past month. Bitfinex referred to SUI and AAVE as altcoins, which achieved a 100% price increase in August and September.
On the other hand, as shown by the index that displays the data, altcoins outside the top 10 in terms of market capitalization did not increase. Nevertheless, open interest in these assets has risen from $10.74 billion in August to $11.48 billion.