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10xResearch analysts who had predicted correctly bitcoin-holdings-bullish/” rel=”nofollow”>the price of bitcoin The run-up to a new all-time high at the beginning of the year has turned bullish once again. In a recent report by 10xResearch head of research Markus Thielen, analysts point to a number of factors that have caused btc price to turn bullish. As before, this is a development that could lead to a new all-time high for the price of bitcoin, something that could usher in another bull market.
Fed Rate Cut Triggers bitcoin Rising
Following the Federal Reserve's decision to cut interest rates by 0.5 basis points at the beginning of the month, the price of bitcoin has continued a positive upward trend. It went from trending around $53,000 to surpassing $66,000 in a matter of weeks. However, the bullish trend may be far from over as analysts see more upside.
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In the report, the 10xResearch Analysts point to a surge in stablecoin minting and billions in inflows from Chinese over-the-counter brokers as reasons why the rally could continue. Since the Federal Reserve rate cuts, approximately $10 billion in new stablecoins have been minted. Naturally, this is positive for the bitcoin market as it means new inflows are coming. The report explains that stablecoin inflows so far this year have exceeded $35 billion.
Another positive development is the increase in decentralized finance (DeFi) activity across the space. There has been an increase in fee income, indicating greater participation. “Although activity has slowed in September, activity and fees could rebound following the Federal Reserve's recent rate cut,” the report reads.
Analysts believe that the price of bitcoin is now pointing to new all-time highs after breaking the bearish trend that has plagued it for months. “With bitcoin surpassing $65,000, we anticipate a quick move towards $70,000, followed by new all-time highs in the near term,” the analyst said.
Altcoin season is underway
The Fed rate cuts have not been positive for the price of bitcoin just because The altcoin market has also followed suit.. There has been an over 20% increase in the market capitalization of altcoins this month alone, showing that they are also following the bullish trend established by bitcoin.
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There has been a notable drop in btc dominance since the Federal Reserve's announcement. This suggests that altcoins are gaining ground, and if the bitcoin-whales-resume-shorting-positions/” rel=”nofollow”>bitcoin Mastery continues to fall, it could signal the start of another altcoin season.
“One notable change occurred after last week's FOMC meeting: bitcoin dominance has declined, while ethereum gas fees have skyrocketed, driven by a surge in altcoin activity across the ecosystem” said the analysts. “If the Federal Reserve remains open to cutting rates, the search for high beta altcoins will likely gain further momentum.”
Featured image created with Dall.E, chart from Tradingview.com
