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10xResearch analysts who predicted correctly Bitcoin price The run-up to a new all-time high earlier in the year has turned bullish again. In a recent report by 10xResearch Head of Research Markus Thelin, analysts pointed to a number of factors that led to Bitcoin’s price turning bullish. Just like before, this is a development that could send the price of Bitcoin to a new all-time high, something that could mark the beginning of another bull market.
Interest rate cut by Fed triggers Bitcoin uprising
Following the Federal Reserve’s decision to cut interest rates by 0.5 basis points earlier in the month, Bitcoin price has been on a positive uptrend. It went from trending towards $53,000 to rising above $66,000 in a matter of weeks. However, the uptrend may be far from over as analysts see further upside.
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In the report, 10xResearch Analysts point to rising stablecoin mints and billions in inflows from Chinese OTC brokers as reasons for the continued rally. Since the Fed’s interest rate cut, nearly $10 billion in new stablecoins have been minted. Naturally, this is a positive thing for the Bitcoin market because it means new inflows are arriving. The report shows that stablecoin flows since the beginning of the year to date have exceeded $35 billion.
Another positive development in this is the rise in decentralized finance (DeFi) activity across the space. Fee revenues have increased, indicating increased participation. “While activity slowed in September, activity and fees could rebound following the Fed’s latest rate cut,” the report said.
Analysts believe that Bitcoin price is now targeting all-time highs after breaking the downtrend that has plagued it for several months. “With Bitcoin price breaking above $65,000, we expect a quick move towards $70,000, followed by all-time highs in the near term,” the analyst said.
Altcoin season is on the way
The Fed rate cuts were not only positive for the price of Bitcoin as they happened The altcoin market has also followed suit. There has been a jump of over 20% in the market cap of altcoins this month alone, showing that they are also following the uptrend set by Bitcoin.
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There has been a noticeable decline in BTC dominance since the Fed announcement. This indicates that altcoins are gaining more ground, and if… Bitcoin dominance If it continues to decline, it could signal the start of another altcoin season.
“There has been a notable shift following last week’s FOMC meeting: Bitcoin’s dominance has diminished, while Ethereum’s gas fees have risen, supported by surging altcoin activity across the ecosystem,” the analysts stated. “If the Fed remains open to lowering interest rates, the pursuit of high-beta cryptocurrencies is likely to gain further momentum.”
Featured image created with Dall.E, chart from Tradingview.com