10xResearch analysts who had correctly predicted Bitcoin’s price surge to a new all-time high earlier in the year have turned bullish once again. In a recent report, 10xResearch Head of Research Markus Thielen highlighted several factors contributing to Bitcoin’s upward trend, suggesting the potential for another run-up to a new all-time high, which could signal the beginning of another bull market.
Following the Federal Reserve’s decision to cut interest rates by 0.5 basis points earlier in the month, Bitcoin’s price has been on a positive trajectory. It jumped from around $53,000 to over $66,000 within weeks. However, analysts believe the uptrend may be far from over. The 10xResearch report attributes this rally to an increase in stablecoin minting and substantial inflows from Chinese over-the-counter brokers. Since the Fed rate cuts, approximately $10 billion in new stablecoins have been minted, bringing year-to-date stablecoin inflows to more than $35 billion. This influx of new capital is considered a positive indicator for the Bitcoin market.
Another encouraging sign is the rise in decentralized finance (DeFi) activity. There has been an uptick in fee revenue, indicating increased participation within the space. The report noted that while DeFi activity slowed in September, it is expected to rebound following the Fed’s recent rate cut.
The analysts assert that Bitcoin has broken the downtrend that hindered its performance for months. With Bitcoin exceeding $65,000, they anticipate a swift move toward $70,000, followed by new all-time highs in the near term.
The Fed rate cuts have also positively impacted the altcoin market. This month alone, the altcoin market cap has surged by over 20%, mirroring Bitcoin’s bullish trend. Bitcoin’s dominance has notably declined since the Fed announcement, suggesting that altcoins are gaining ground. If Bitcoin’s dominance continues to fall, it could indicate the onset of another altcoin season.
The analysts pointed out a significant shift following last week’s FOMC meeting: Bitcoin’s dominance has weakened, while Ethereum gas fees have spiked, driven by increased altcoin activity across the ecosystem. They believe that if the Federal Reserve remains open to further rate cuts, high-beta altcoins will likely gain additional momentum.
