This is the Reason Bitcoin Surged Above $64K Last Week, According to Bitfinex

This is the Reason Bitcoin Surged Above $64K Last Week, According to Bitfinex



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.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Panther AI
Panther AI
This is the Reason Bitcoin Surged Above $64K Last Week, According to Bitfinex
Bitcoin whale bets $368M with 40x leverage on BTC decline ahead of FOMC
24 Ways Crypto Investors Are Being Hunted by Cybercriminals—Wallets Drained at Record Speed
Trump's Strategic Bitcoin Reserve Sparks Backlash Over Alleged Self-Enrichment
Bitcoin
Watch these Bitcoin price levels as BTC retests key $84K resistance
Turkey Tightens Crypto Regulations, Grants CMB Oversight
bitcoin
ethereum
bnb
xrp
cardano
solana
dogecoin
polkadot
shiba-inu
dai
Bitcoin whale bets $368M with 40x leverage on BTC decline ahead of FOMC
Launching your first AI project with a grain of RICE: Weighing reach, impact, confidence and effort to create your roadmap
24 Ways Crypto Investors Are Being Hunted by Cybercriminals—Wallets Drained at Record Speed
Rising $219B stablecoin supply signals mid-bull cycle, not market top
Report: Bitcoin Miners Sitting on 100K BTC Fortune — But Owe $4.6B
Bitcoin whale bets $368M with 40x leverage on BTC decline ahead of FOMC
Launching your first AI project with a grain of RICE: Weighing reach, impact, confidence and effort to create your roadmap
24 Ways Crypto Investors Are Being Hunted by Cybercriminals—Wallets Drained at Record Speed
Rising $219B stablecoin supply signals mid-bull cycle, not market top
bitcoin
ethereum
tether
xrp
bnb
solana
usd-coin
cardano
dogecoin
tron
bitcoin
ethereum
tether
xrp
bnb
solana
usd-coin
cardano
dogecoin
tron