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10xResearch analysts, who accurately predicted Bitcoin’s rise to a new all-time high earlier this year, are once again bullish. Markus Thielen, the Head of Research at 10xResearch, highlights several factors contributing to Bitcoin’s bullish trend. This development could potentially lead to another all-time high, signaling the start of a new bull market.
Fed’s Rate Cut Triggers Bitcoin Uprising
The Federal Reserve’s recent decision to cut interest rates by 0.5 basis points has sparked a positive uptrend in Bitcoin’s price. Bitcoin rose from around $53,000 to over $66,000 in just a few weeks. According to 10xResearch analysts, this uptrend is far from over, and further upside is anticipated.
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The report notes the rise in stablecoin minting and significant inflows from Chinese over-the-counter brokers as key reasons for the continued rally. Since the Fed rate cuts, approximately $10 billion in new stablecoins have been minted. This influx is beneficial for the Bitcoin market, indicating new capital inflows. Year-to-date stablecoin inflows have now surpassed $35 billion.
Another positive development is the rise in decentralized finance (DeFi) activity. Increased fee revenue suggests more participation in the space. The report states, “While activity slowed in September, it could rebound following the Fed’s recent rate cut.”
The analysts believe Bitcoin is now targeting new all-time highs after breaking a months-long downtrend. “With Bitcoin breaking above $65,000, we anticipate a swift move toward $70,000, followed by new all-time highs in the near term,” said the analyst.
Altcoin Season Is On The Way
The Fed rate cuts have positively impacted not only Bitcoin but also the altcoin market. There has been a more than 20% increase in the altcoin market cap this month alone, indicating that altcoins are following Bitcoin’s bullish trend.
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A notable decline in Bitcoin’s dominance has been observed since the Fed announcement, suggesting that altcoins are gaining ground. If Bitcoin’s dominance continues to fall, 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 stated. “If the Federal Reserve remains open to cutting rates, high-beta altcoins will likely gather further momentum.”
