With Bitcoin (CRYPTO: BTC) breaking above $66,000, 10x Research predicts a swift move towards $70,000 and new all-time highs, fueled by stablecoin minting, monetary stimulus in China and renewed altcoin activity.

What Happened: The 10x Research analysts led by Markus Thielen highlighted in their latest report that since the Federal Reserve's September rate cut, Bitcoin and Ethereum (CRYPTO: ETH) have surged 5% and 11%, respectively.

Some altcoins also experienced more impressive gains like Ethena (CRYPTO: ENA), Sei (CRYPTO: SEI) and Shiba Inu (CRYPTO: SHIB) reported gains of 54%, 51%, and 36%, respectively.

The analysts point out several factors driving the uptrend:

Stablecoin Minting

The uptrend is supported by accelerating stablecoin minting, with nearly $10 billion issued in recent weeks, surpassing Bitcoin ETF flows.

Circle, the company behind (CRYPT: USDC) and known for catering to regulated institutions, has accounted for 40% of recent stablecoin inflows, signaling increased interest from larger market players. Year-to-date, stablecoin inflows have reached $35 billion, pushing the total value of outstanding stablecoins to $160 billion.

Altcoin Activity Spike

The report highlights a DeFi renaissance followed a drop in bond yields, with Aave's (CRYPTO: AAVE) lending platform fees reaching $43 million in August, surpassing the previous peak of $42 million in March 2024. Bitcoin's dominance has waned post-FOMC meeting, while Ethereum gas fees have spiked due to increased altcoin activity.

Also Read: Bitcoin Is 97% Sure To Close The Month Above $60K—But What Are The Chances It Even Hits $70K?

Retail Trading

Retail crypto trading in South Korea has seen daily volumes of around $2 billion, with Shiba Inu reclaiming the top spot in trading volume, signaling rising speculation. Chinese over-the-counter brokers have reported consistent quarterly inflows of $20 billion for the last six quarters, totaling around $120 billion.

China Stimulus Plan

The report suggests that the $278 billion Chinese stimulus plan, combined with potential capital outflows from China, could trigger a "parabolic rally" in cryptocurrency prices. 10x Research predicts Bitcoin will reach $70,000 in the next two weeks, with new all-time highs expected by late October.

Interestingly, this surge coincides with Bitcoin's 30-day realized volatility dropping to 41%, potentially allowing institutional traders to take larger positions. The report concludes that the likelihood of a Q4 rally is "exceptionally high," with gains likely front-loaded and FOMO returning to the altcoin market.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

• Bitcoin Shines As Hedge Against 'Major Geopolitical Events,' Says Research Firm

Image