Bitcoin (BTC) has surged past the $65,000 mark, fueled by a wave of stablecoin liquidity and stimulus measures from China, setting its sights on a potential breakthrough to $70,000. This rise comes as a welcome recovery after a period of bearish market sentiment.
Bitcoin aims for $70,000, supported by stablecoin inflows
According to a recent report by 10x Research, Bitcoin has emerged from its recent downtrend and is now targeting a key milestone of $70,000.
The report highlights that a combination of factors is behind this price increase, most notably a surge in stablecoin liquidity and a broader recovery in the global cryptocurrency market.
The report states, “Our immediate focus is on Bitcoin’s recent breakout above $65,000, with a target of $70,000 in the next two weeks and the potential for new all-time highs by the end of October.”
The release of Binance’s founder adds to the market momentum
The shift in market sentiment also coincides with the release of Binance founder Changpeng “CZ” Zhao from federal custody in the U.S. on September 27. Zhao’s release has been seen as a positive development by many in the crypto community, further boosting market confidence.
Stablecoin surge following FOMC meeting
In the weeks following the Federal Open Market Committee (FOMC) meeting on July 31, where key decisions on interest rates were postponed, there was an issuance of nearly $10 billion in stablecoins.
This influx of stablecoins has had a major impact on the cryptocurrency market, with stablecoins serving as a vital bridge for traders moving funds into other cryptocurrencies like Bitcoin.
Currently, the total value of stablecoins in circulation exceeds $160 billion, with USD Coin (USDC) gaining popularity among institutional investors. Circle’s USDC has become one of the most preferred stablecoins for large-scale transactions, further driving liquidity into the crypto market.
China’s stimulus measures fueling the rally
The report also emphasizes the influence of China’s recent economic stimulus plan, which has played a significant role in driving Bitcoin’s price.
According to 10x Research, the $278 billion stimulus package announced by China has the potential to trigger a parabolic rally in cryptocurrency prices due to an increase in global liquidity.
The report further notes that cryptocurrency brokers in China have witnessed over $40 billion in inflows during the first half of the year, with 55% of the trading volume coming from transactions exceeding $1 million.
This signals strong institutional participation and adds momentum to Bitcoin’s upward trajectory.
Lower volatility encourages larger institutional bets
Despite the rally in Bitcoin’s price, its market volatility remains relatively low.
The 30-day realized volatility is sitting at 41%, below the five-year average, according to the report. This lower volatility has attracted institutional traders, who adhere to strict risk management practices and are now taking larger positions in the market.
“With reduced volatility, institutional traders can take larger positions,” the report states. “The likelihood of a Q4 rally is exceptionally high, with gains likely to accelerate.”
If the predictions in the 10x Research report hold, Bitcoin could soon breach the $70,000 mark within weeks, potentially pushing prices even higher as the fourth quarter unfolds.
Conclusion
As stablecoin liquidity flows in and China’s stimulus measures boost global liquidity, Bitcoin appears well-positioned to reach $70,000 in the near term. Institutional involvement, combined with lower volatility, is further propelling Bitcoin’s price momentum.
With October shaping up to be a strong month, all signs point toward a potential new all-time high for BTC by the end of the month.