Bitcoin Price- Stablecoin Trends Impacting Bitcoin’s Price Surge
Bitcoin Price– Impressive gains since the U.S. Federal Reserve’s mid-September rate cut and subsequent China stimulus plans have pushed Bitcoin (BTC) out of its downtrend, according to a new research report.
The Surge in Bitcoin’s Price
FOMO is Back: Are You Holding Enough Bitcoin and Altcoins to Ride the New Wave, is the title of 10X Research’s Markus Thielen’s latest analysis. Thielen noted that with Bitcoin breaking above $65,000, we anticipate a swift move toward $70,000, followed by new all-time highs in the near term. The report highlights a sharp increase in stablecoin minting following the Fed’s July meeting, where rates were left unchanged, but a September easing was indicated. This resulted in nearly $10 billion in stablecoin minting in the weeks that followed, flooding the crypto markets with liquidity and sharply surpassing spot ETF flows.
Stablecoin Dynamics: A Closer Look
Thielen pointed out that Circle’s USDC accounted for 40% of recent stablecoin inflows, a significantly higher share compared to Tether’s USDT. He explained, It’s important, as while USDT minting on TRON is typically associated with capital preservation, USDC minting could indicate a rise in DeFi activity. Additionally, Thielen noted that 55% of currently mined bitcoins are coming from Chinese mining pools. He suggested that China’s substantial monetary and fiscal stimulus measures, announced just after the Fed rate cut, could lead to large capital outflows from China into cryptocurrencies.
Optimism for Q4 Rally
The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded, Thielen concluded. A major surge could be on the horizon, sparking even more FOMO across the crypto space. Currently, Bitcoin is up 2.3% over the past 24 hours and nearly 12% month-over-month, reaching $66,300, its strongest level since late July.
As market dynamics shift, investors are advised to keep an eye on these developments and consider their strategies moving forward.
FAQs
What factors are contributing to Bitcoin’s recent price increase?
Bitcoin’s recent price surge is primarily driven by the U.S. Federal Reserve’s mid-September rate cut and China’s stimulus measures, which have flooded the market with liquidity. Additionally, a significant increase in stablecoin minting, particularly from USDC, indicates heightened investor interest in cryptocurrencies.
What is the expected price target for Bitcoin in the near future?
Analysts, including Markus Thielen from 10X Research, anticipate that Bitcoin could move swiftly toward $70,000 after breaking above $65,000. There are expectations of new all-time highs as market conditions remain favorable.
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