Hold onto your seats, crypto enthusiasts! Bitcoin just made a dazzling leap above $64,000, thanks to a recent Fed rate cut. Yup, the Federal Reserve shaved off 50 basis points from interest rates, freeing up cash flow in the U.S. Two days later, Bitcoin basked in the glory of this financial breeze, skyrocketing past $64K and breathing new life into the market.
But wait, it wasn’t your usual spot trading that fueled this rally. Nope, according to Bitfinex’s crystal ball, it was the futures and perpetual markets that stole the show. Their latest report reveals that Bitcoin’s open interest was the real star, not the spot trading. Imagine that! Open interest surged ahead, leaving Bitcoin’s price gains in the dust.
Data from Coinglass shows that Bitcoin’s open interest hit a whopping $34.9 billion, the highest since early August. Bitfinex analysts are buzzing with excitement, suggesting that a spike in spot Bitcoin ETF engagement could catapult BTC even closer to its peak of $73,800. With over $397.2 million pouring into U.S.-traded spot Bitcoin ETFs last week, the bulls are eyeing the next big breakout.
If this trend keeps up, Bitcoin might just punch through the $65,200 price resistance barrier from late August. Should that happen, we could be looking at new highs as summer’s low liquidity fades away. But, watch out! Without continuous spot buying, we might just see some consolidation or even a partial correction, according to the savvy analysts.
And it's not just Bitcoin basking in the sunshine. Other crypto goodies like SUI and AAVE have been on a joyride, doubling their prices in August and September. Meanwhile, altcoins outside the top 10 by market cap haven’t been as lucky, but they’re not out of the game yet. Open interest in these lesser-known assets has jumped from $10.74 billion in August to $11.48 billion.
So, folks, keep your eyes peeled and your crypto wallets ready. The market is sizzling, and you won't want to miss the next big wave!
