Bitcoin (BTC) is approaching its August 25 peak of $65,200, a key resistance level that may lead to prolonged consolidation, according to the latest Bitfinex Alpha report.
After the Federal Reserve’s 50 basis point interest rate cut, BTC has risen nearly 7%. However, this price surge is primarily driven by futures trading rather than spot market activity, raising concerns about potential volatility.
Global open interest in Bitcoin futures has increased to $19.43 billion, up from $18.93 billion on August 25, while the price remains about $1,000 below its recent high. This indicates that current price movements are largely influenced by futures rather than spot transactions.
Spot market buying is slowing, with the cumulative spot delta indicator stabilizing above $63,500, suggesting a potential new lower trading range or partial correction.
While these trends may appear bearish, Bitfinex analysts note that high open interest reflects renewed investor interest in speculative assets rather than increased leverage.
Additionally, altcoin speculation is rising, with tokens like SUI and AAVE seeing 100% growth from their lows, as overall interest in altcoins has surged to $11.48 billion, surpassing the previous peak of $10.74 billion on August 19.
Sky, previously known as MakerDAO, is reconsidering its stance on using Wrapped Bitcoin (WBTC) as collateral after a crucial meeting with BitGo CEO Mike Belshe.
BlackRock’s Bitcoin and Ethereum exchange-traded funds (ETFs) experienced a significant boost, attracting around $158 million in net inflows on Tuesday as the crypto market rebounded, pushing Bitcoin’s price above $64,000.
Quantitative analyst PlanB is predicting a significant breakout for Bitcoin (BTC), suggesting it may soon mimic the explosive price action seen in 2020.
Analysts suggest that Bitcoin and the broader cryptocurrency markets might be on the verge of a significant breakout if past cycles hold true.