Bitcoin has surged past $65,000, driven by a combination of China’s stimulus measures and a significant influx of stablecoin liquidity. According to a recent report from 10x Research, Bitcoin has successfully broken out of its recent downtrend and is now targeting the $70,000 milestone.
The report attributes the price surge to several factors, including the increased availability of stablecoins and a broader global recovery in the cryptocurrency market. 10x Research states, “Our immediate focus is on Bitcoin’s recent breakthrough above $65,000, with a target of $70,000 within the next two weeks and the potential for new all-time highs by late October.”
The market’s renewed optimism coincides with the release of Changpeng “CZ” Zhao, Binance founder and former CEO, from U.S. federal prison on September 27.
Stablecoins Fuel the Rally
Following the Federal Reserve’s July 31 Federal Open Market Committee (FOMC) meeting, which postponed a rate cut decision, nearly $10 billion in stablecoins were issued. These stablecoins, such as Circle’s USD Coin (USDC), have been instrumental in driving Bitcoin’s price surge as traders and investors utilize them to shift their positions into other cryptocurrencies. The total value of outstanding stablecoins now exceeds $160 billion, with a significant portion linked to USDC.
China’s Stimulus Impact
10x Research also highlighted the role of China’s recent stimulus measures in boosting Bitcoin’s price trajectory. The $278 billion stimulus plan is expected to ignite a parabolic rally in cryptocurrency prices due to increased global liquidity. The report estimates that Chinese crypto brokers have witnessed over $40 billion in inflows during the first half of the year, with 55% of the volume originating from transactions exceeding $1 million.
Also Read: Bitcoin Eyes 10% Monthly Gains As Ethereum Surges 16% In September Rally
Lower Volatility, Bigger Bets
Despite the rally, Bitcoin’s volatility remains relatively low, with a 30-day realized volatility below the five-year average at 41%. This lower volatility is attracting institutional traders who are more comfortable taking larger positions due to reduced risk.
If 10x Research’s predictions are accurate, Bitcoin could reach the $70,000 mark within weeks, potentially setting the stage for even higher price targets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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