This is the reason why Bitcoin increased by more than $64K last week, according to Bitfinex

Last week, the Federal Reserve cut interest rates by 50 basis points, which allowed for an increase in the flow of money in the United States. Two days after the price cut, Bitcoin's price rose above $64,000, boosting confidence in the market.

According to Bitfinex's latest weekly report, the jump in the price of BTC was influenced by movements in the futures and futures markets rather than the spot market.

What Driven Bitcoin's Recent Price Increase?

The report notes that bitcoin open interest has driven the most recent growth over spot trading, indicating that the futures and perpetual markets have seen the highest investor participation. The exchange's analysts added that the crypto asset's open interest “outpaced BTC's own price gains.”

According to on-chain data from blockchain analytics platform Coinglass, bitcoin open interest recently reached $34.9 billion, the highest since early August.

Bitfinex analysts added that increased participation in the Bitcoin exchange-traded fund (ETF) market could push the major cryptocurrency back to its all-time high of $73,800. Over $397.2 million worth of US-traded Bitcoin ETFs entered the U.S. last week, confirming that the price of BTC could be headed higher.

If this trend of Bitcoin ETF flows continues, the main crypto asset could open the $65,200 price resistance from the end of August, according to the market report.

“If Bitcoin breaches key resistance levels from late August, this could propel the asset to new highs, coinciding with the end of summer's low liquidity. However, without sustained position buying, consolidation or a partial correction seems unlikely, analysts said.

See Altcoins price increases

In addition to bitcoin, other crypto assets have seen significant gains over the past month. Bitfinex cites SUI and AAVE as altcoins that posted 100% price increases in August and September.

On the other hand, altcoins that are not included in the top 10 coins by market capitalization did not increase, according to an index that shows the data. Still, open demand for these assets rose to $11.48 billion from $10.74 billion in August.