Bitcoin Bulls Roar Back: Is Another All-Time High on the Horizon?
Analysts Who Correctly Predicted Bitcoin’s March ATH Forecast What’s Next
The crypto market is buzzing with excitement once again as analysts who accurately predicted Bitcoin’s surge to a new all-time high (ATH) earlier this year are now sounding the bullish trumpets. Leading research firm, 10xResearch, has released a new report outlining the key factors driving this renewed optimism, suggesting a potential return to record-breaking territory.
Fed’s Rate Cut Sparks Bitcoin Uprising
The Federal Reserve’s decision to cut interest rates by 0.5 bps earlier this month has ignited a surge in Bitcoin’s price, sending it soaring from around $53,000 to above $66,000 in a matter of weeks. However, analysts at 10xResearch believe this uptrend is far from over and predict further upside potential.
Stablecoin Inflows and DeFi Activity Fuel the Rally
The report highlights the surge in stablecoin minting and substantial inflows from Chinese over-the-counter brokers as major catalysts for the continued rally. Since the Fed rate cut, approximately $10 billion in new stablecoins have been minted, indicating a strong influx of fresh capital into the Bitcoin market. Additionally, the report notes that year-to-date stablecoin inflows have surpassed $35 billion.
Further bolstering the bullish sentiment is the rising activity in the decentralized finance (DeFi) sector. Increased fee revenue suggests growing participation and a thriving DeFi ecosystem. “While activity has slowed in September, activity and fees could rebound following the Fed’s recent rate cut,” the report states.
Bitcoin Targeting New All-Time Highs
With Bitcoin decisively breaking through the downtrend that had hampered its progress for months, 10xResearch analysts believe it’s poised to reach new all-time highs. “With Bitcoin breaking above $65,000, we anticipate a swift move toward $70,000, followed by new all-time highs in the near term,” the report asserts.
Altcoin Season on the Horizon?
The positive effects of the Fed’s rate cut are not limited to Bitcoin; the altcoin market has also experienced a significant resurgence. The altcoin market cap has jumped over 20% this month alone, indicating a strong follow-through on the bullish momentum set by Bitcoin.
A notable decrease in Bitcoin dominance since the Fed’s announcement suggests altcoins are gaining ground. If this trend continues, it could signal the beginning of another altcoin season. “A notable shift occurred following last week’s FOMC meeting: Bitcoin’s dominance has waned, while Ethereum gas fees have spiked, fueled by a surge in altcoin activity across the ecosystem,” the analysts observe. “If the Federal Reserve remains open to cutting rates, pursuing high-beta altcoins will likely gather further momentum.”
The Future of Bitcoin and the Crypto Market
The recent developments in the crypto market, particularly the Fed’s actions and the ensuing surge in Bitcoin and altcoins, have fueled a wave of optimism. The analysts at 10xResearch believe that the market is on a path toward new all-time highs, potentially marking the beginning of another bull run. However, as always, it’s crucial to exercise caution and conduct thorough research before making any investment decisions.