Analysts at 10xResearch, who accurately predicted Bitcoin prices would rise to all-time highs earlier this year, have turned bullish again. In a recent report by Markus Thielen, head of research at 10xResearch, analysts point to a number of factors that have contributed to the bullish turn in BTC price. As before, this is a development that could lead to a rise in Bitcoin prices to all-time highs and could mark the beginning of a new bull market.
Fed rate cut triggers Bitcoin uprising
Bitcoin prices are trending higher after the Federal Reserve decided to cut interest rates by 0.5 basis points earlier this month. The stock price, hovering around $53,000, rose to over $66,000 in a few weeks. However, the uptrend may not be over yet, as analysts see further upside potential.
In the report, 10xResearch analysts cited increased minting of stablecoins and billions of dollars in inflows from Chinese over-the-counter brokers as reasons for the continued rally. Approximately $10 billion of new stablecoins have been minted since the Fed's interest rate cut. Naturally, this is positive for the Bitcoin market as it means new capital is flowing in. The report explains that year-to-date inflows into stablecoins now exceed $35 billion.
Another positive development associated with this is the rise of decentralized finance (DeFi) activity across the universe. Fee income has also increased, indicating an increase in participation. “Activity slowed in September, but activity and fees could rebound given the Fed's recent interest rate cuts,” the report said.
Analysts believe the price of Bitcoin is breaking the downward trend it has been plagued with for months and is heading towards new all-time highs. “With Bitcoin breaking above $65,000, we expect it to move quickly toward $70,000 and then to new all-time highs in the near future,” the analyst said.
Altcoin season is approaching
The Fed’s interest rate cut is not only positive for Bitcoin prices, as the altcoin market is following suit. Altcoin market capitalization has increased by more than 20% this month alone, showing that it is also following the bullish trend set by Bitcoin.
Since the Fed's announcement, BTC's dominance has declined noticeably. This suggests that altcoins are on the rise, and if Bitcoin's dominance continues to decline, it could signal the beginning of a new altcoin season.
“A notable change occurred after last week’s FOMC meeting, fueled by a surge in altcoin activity across the ecosystem, which weakened Bitcoin’s dominance while increasing Ethereum gas fees,” analysts said. said. “If the Federal Reserve is willing to cut interest rates, the pursuit of high-beta altcoins will likely gain further momentum.”
