Bitcoin has surpassed $65,000, boosted by China’s stimulus measures and stablecoin inflows.
A recent report from 10x Research indicates that Bitcoin has emerged from its recent downtrend and is now aiming for the $70,000 mark again.
The report credits this price surge to several factors, including an influx of stablecoin liquidity and a general recovery in the global crypto market.
“[…] our immediate attention is on Bitcoin’s recent breakout above $65,000, with a target of $70,000 in the next two weeks and expectations of new all-time highs by late October.”
This shift in momentum coincided with Changpeng “CZ” Zhao, founder and former CEO of Binance, being released from U.S. federal prison on September 27.
Stablecoins Flood Market Post-FOMC Meeting
The report notes that nearly $10 billion in stablecoins were issued following the Federal Reserve’s July 31 Federal Open Market Committee (FOMC) meeting, which postponed a key rate cut decision.
This influx of liquidity has significantly impacted the crypto market, as stablecoins serve as a primary asset for traders and investors looking to reposition into other cryptocurrencies like Bitcoin.
Currently, the total value of outstanding stablecoins surpasses $160 billion, with a significant portion of the inflows attributed to Circle’s USD Coin, which is gaining popularity among institutional investors.
Chinese Stimulus Implications
The 10x Research report also emphasizes the effect of China’s recently announced stimulus measures on Bitcoin’s price trajectory, drawing parallels to the 2014 Bitcoin rally:
“The $278 billion Chinese stimulus plan could ignite a parabolic rally in cryptocurrency prices, fueled by increasing global liquidity.”
The report estimates that Chinese crypto brokers experienced over $40 billion in inflows during the first half of the year, with 55% of this volume resulting from transactions exceeding $1 million.
Bigger Bets, Lower Volatility
Despite the rally in the crypto market, Bitcoin’s volatility remains relatively low, with a 30-day realized volatility of 41%, below the five-year average, according to the report.
“With lower volatility, institutional traders—who adhere to strict risk management—can take on bigger positions […] The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded.”
If the report’s predictions hold true, Bitcoin could reach the $70,000 mark within weeks, potentially pushing its price beyond that threshold.
