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Bitcoin has surged past $65,000, boosted by China’s stimulus measures and stablecoin inflows.
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According to a recent report from 10x Research, Bitcoin has broken out of its ongoing recent downtrend, and the cryptocurrency is now setting its sights on the $70,000 milestone again.
The report attributes the price surge to a combination of driving factors, including an influx of stablecoin liquidity and a general global recovery for the crypto market.
“[…] our immediate attention is on Bitcoin’s recent breakout above $65,000, with a target of $70,000 in the next two weeks and expectations of new all-time highs by late October.”
The change in the tide also comes amid Changpeng “CZ” Zhao, Binance founder and former CEO, being released from United States federal prison on Sept. 27.
Related: Bitcoin poised for potential rally as FTX payout looms and Fed shifts
Stablecoins flood market post-FOMC meeting
According to the report, nearly $10 billion in stablecoins were issued in the weeks following the Federal Reserve’s July 31 Federal Open Market Committee (FOMC) meeting, which postponed a critical rate cut decision.
The injection of this liquidity into the crypto market has had a significant impact, as stablecoins are a fundamental asset traders and investors use to shift their positions to other cryptocurrencies like Bitcoin (BTC).
The total value of outstanding stablecoins now exceeds $160 billion, with a large portion of these inflows linked to Circle’s USD Coin (USDC), which is becoming increasingly popular among institutional investors.
Related: Institutions not so interested in Bitcoin at $58K, metric shows
Chinese stimulus implications
The 10x Research report also highlighted the impact of China’s recently announced stimulus measures on the BTC price trajectory and the country’s role in the 2014 BTC rally:
“The $278 billion Chinese stimulus plan could ignite a parabolic rally in cryptocurrency prices, fueled by increasing global liquidity.”
The report estimates that Chinese crypto brokers have seen over $40 billion in inflows in just the first half of the year, with 55% of the volume coming “from transactions over $1 million.”
Related: Stablecoin issuance could be key to the next Bitcoin rally — 10x Research
Bigger bets, lower volatility
Despite the rally in the crypto market, BTC volatility remains notably subdued, with a 30-day realized volatility below the five-year average at 41%, according to the report.
“With lower volatility, institutional traders—who adhere to strict risk management—can take on bigger positions […] The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded.
If the report is accurate in its predictions, the $70,000 BTC mark could occur within weeks, potentially propelling the price of BTC beyond that milestone.
Magazine: Worldcoin fined again! Crypto store clerk runs off with $500K cash: Asia Express
This article first appeared at Cointelegraph.com News
