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10x research analysts who accurately predicted the price of Bitcoin to reach new unprecedented highs at the beginning of the year have changed again. In a recent report by 10xResearch Head of Research, Markus Thielen, analysts point out several factors that have seen the price of BTC turn bullish. As before, this is a development that could lead to a new rise in the price of Bitcoin, something that could mark the start of another bull market.
Fed’s Rate Cut Causes Bitcoin Uprising
Following the Federal Reserve’s decision to cut interest rates by 0.5 bps at the beginning of the month, the price of Bitcoin has been steadily rising. It rose from a low of around $53,000 to over $66,000 in a matter of weeks. However, the upside may be far from done as analysts see some upside.
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In the report, 10xResearch analysts point to the growth of stablecoin minting and billions in revenue from Chinese over-the-counter traders as reasons why the rally could continue. Since the Fed rate cut, about 10 billion dollars in new stablecoins have been created. Naturally, this is good for the Bitcoin market as it means that new inflows are coming. The report explains that stablecoin inflows for the year so far have reached $35 billion.
Another positive development with this is the rise of decentralized finance (DeFi) across the globe. There was an increase in income, indicating more participation. “Although activity slowed in September, activity and interest rates may return following the Fed’s rate cut,” the report read.
Analysts believe that the price of Bitcoin is now aiming for a new all-time high after breaking the downtrend that has plagued it for months. “As Bitcoin surpasses $65,000, we expect a quick move towards $70,000, followed by a new all-time high in the near term,” the analyst said.
Altcoin season is on its way
The Fed’s rate cut was not only good for the price of Bitcoin as the altcoin market also followed suit. There has been a jump of more than 20% in the altcoin market this month alone, indicating that they are also following the bullish trend set by Bitcoin.
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There has been a significant decline in BTC dominance since the Fed announcement. This suggests that altcoins are gaining, and if Bitcoin’s dominance continues to fall, it may signal the start of another altcoin season.
“A significant change has occurred after last week’s FOMC meeting: Bitcoin’s dominance has decreased, while Ethereum’s gas funds have increased, fueled by increased altcoin activity throughout the global ecosystem,” analysts said. “If the Federal Reserve remains open to reducing rates, the pursuit of high-beta altcoins will likely gain momentum.”
The featured image was created with Dall.E, a chart from Tradingview.com