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10xResearch Analysts Who Predicted It Correctly the Bitcoin price The run-up to a new all-time high earlier this year has turned bullish again. In a recent report from Markus Thielen, head of research at 10xResearch, the analysts point out a number of factors that have caused the BTC price to turn bullish. As before, this is a development that could lead to a run-up to a new all-time high for the Bitcoin price, something that could mark the start of a new bull market.
The Fed’s rate cut sparks a Bitcoin revolt
Following the Federal Reserve’s decision to cut interest rates by 0.5 basis points earlier this month, Bitcoin price is in a positive uptrend. It rose from trending around $53,000 to rising above $66,000 in a few weeks. However, the uptrend is far from over as analysts see even more upside potential.
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The report states the 10xResearch Analysts point to the rise in stablecoin coins and billions in inflows from Chinese over-the-counter brokers as reasons why the rally could continue. Since the Fed’s rate cuts, about $10 billion worth of new stablecoins have been minted. Obviously this is positive for the Bitcoin market as it means new inflows are coming in. The report explains that stablecoin inflows have surpassed $35 billion so far this year.
Another positive development here is the increase in decentralized finance (DeFi) activity across the space. There are higher fee incomes, indicating higher participation. “Although activity has slowed in September, activity and interest rates could rebound following the recent Fed rate cut,” the report said.
The analysts believe that the Bitcoin price is now aiming for new all-time highs, after breaking the downtrend that has been plaguing the price for months. “With Bitcoin breaking above $65,000, we expect a rapid move towards $70,000, followed by new all-time highs in the near term,” the analyst said.
Altcoin season is coming
The Fed’s interest rate cuts are not only positive for the Bitcoin price The altcoin market has also followed suit. This month alone, the market cap of altcoins has increased by more than 20%, showing that they are also following the bullish trend set by Bitcoin.
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There has been a notable decline in BTC’s dominance since the Fed’s announcement. This suggests that altcoins are gaining ground, and if the Bitcoin dominance continues to decline, this could signal the start of a new altcoin season.
“There was a notable shift after last week’s FOMC meeting: Bitcoin’s dominance has declined, while Ethereum gas rates have risen, fueled by an increase in altcoin activity across the ecosystem,” the analysts said. “If the Federal Reserve remains open to rate cuts, the pursuit of high-beta altcoins is likely to gain even more momentum.”
Featured image created with Dall.E, chart from Tradingview.com