As a seasoned researcher with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and trends. However, the current bullish trend in Bitcoin, triggered by the Fed’s rate cut, is something that has piqued my interest once again.
10xResearch analysts who accurately forecasted Bitcoin‘s surge to a record high earlier in the year are optimistic again. In a recent analysis by 10xResearch Head of Research, Markus Thielen, these analysts identify several key factors that have made Bitcoin’s price rise bullish. As was the case before, this trend could potentially lead Bitcoin’s price to reach another all-time high, signaling the start of a new bull market.
Fed’s Rate Cut Triggers Bitcoin Uprising
After the Federal Reserve lowered interest rates by 0.5 basis points earlier this month, Bitcoin’s price has been climbing steadily. It went from hovering around $53,000 to surpassing $66,000 in just a few weeks. Analysts believe this upward trend could continue and predict more gains for Bitcoin.
According to the 10xResearch analysis, the ongoing surge in stablecoin creation and billions of dollars flowing in from Chinese OTC brokers are key factors suggesting the rally may persist further. Since the Fed’s rate cuts, around $10 billion worth of new stablecoins have been minted, which is good news for the Bitcoin market since it indicates fresh investments. The report highlights that this year alone, inflows from stablecoins have reached an impressive $35 billion mark.
An encouraging aspect of this situation is the growing momentum in Decentralized Finance (DeFi) transactions throughout various platforms. This surge has led to higher fee income, indicating increased involvement. The report suggests that although activity dipped in September, it may pick up again following the Federal Reserve’s recent interest rate reduction, potentially leading to a rise in both activity and fees.
The analysts predict that Bitcoin could be aiming for fresh record prices as it surpassed its previous downtrend and reached over $65,000, with a possible immediate surge towards $70,000 and then setting new peak values soon.
Altcoin Season Is On The Way
The decrease in Federal Reserve interest rates hasn’t just boosted Bitcoin prices; it seems to have influenced the entire altcoin market as well. This month alone, we’ve seen an increase of more than 20% in the total value of altcoins, indicating that they too are mirroring the upward trend established by Bitcoin, suggesting a broader bullish sentiment across the cryptocurrency market.
The significance of Bitcoin’s (BTC) dominance has decreased noticeably following the Federal Reserve’s announcement. This trend implies that alternative cryptocurrencies (altcoins) are growing in popularity. Should the decline in Bitcoin’s dominance persist, it could herald the beginning of another altcoin surge.
After the FOMC meeting last week, there’s been a significant change: Bitcoin’s influence has decreased, while Ethereum transaction fees have increased dramatically due to an uptick in activity among alternative cryptocurrencies. Analysts suggest that if the Federal Reserve continues to consider lowering interest rates, high-risk altcoins may see even more growth.
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2024-09-28 18:04