This is why Bitcoin surpassed $64,000 last week, according to Bitfinex

Last week, the Federal Reserve cut its interest rate by 50 basis points, which helped increase cash flows in the United States. Two days after the rate cut, the price of bitcoin surpassed $64,000, which revived confidence in the market.

According to Bitfinex’s latest weekly report, the rise in BTC price was driven by increased activity in the futures and perpetual markets rather than the spot market.

What triggered the latest Bitcoin price surge?

The report noted that open interest in bitcoin was behind the latest surge rather than spot trading, implying that futures and perpetual markets saw the greatest engagement from investors. The exchange’s analysts added that open interest in the crypto asset “outpaced 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 level seen since early August.

Bitfinex analysts added that increased commitment to the Bitcoin spot exchange-traded fund (ETF) could see the leading cryptocurrency return to prices closer to its peak value of $73,800. More than $397.2 million flowed into U.S.-traded Bitcoin spot ETFs last week, proving that BTC’s price could follow the upward trend.

The market report explains that the leading crypto asset could unlock the late-August price resistance of $65,200 if this Bitcoin ETF inflow trend continues.

“If bitcoin breaks through key late-August resistance levels, it could propel the asset to new highs, coinciding with the end of the summer’s low liquidity. However, without sustained spot buying, a consolidation or partial correction seems the most likely scenario,” the analysts said.

Altcoins see their prices increase

Besides Bitcoin, other cryptoassets have seen a considerable surge over the past month. Bitfinex listed SUI and AAVE as altcoins that unlocked a 100% price increase in August and September.

In contrast, altcoins that are not among the top 10 cryptocurrencies by market capitalization have not increased, as revealed by an index showing the data. Still, open interest in these assets has increased from $10.74 billion in August to $11.48 billion.