Bitcoin and Altcoins on the Verge of Explosive Growth, Says 10x Research

Markus Thielen, Head of Research at 10x Research, indicated that recent Federal Reserve rate cuts and China's stimulus measures have ignited renewed interest in the crypto market.

Since these developments, Bitcoin has most major altcoins, including memecoins, have experienced significant surges.

Thielen reported a significant increase in altcoin trading and stablecoin issuance, with Chinese OTC brokers noting over $120 billion in inflows over the last six quarters. Recently, $10 billion in stablecoins entered the market, enhancing liquidity and surpassing Bitcoin ETF investments. He suggested that Bitcoin’s rise above $65,000 could lead to $70,000 and potentially new all-time highs.

A decline in Bitcoin’s market dominance and rising Ethereum gas fees were attributed to increased altcoin activity. Thielen pointed out that falling 10-year bond yields below 4% have revived interest in decentralized finance (DeFi), with stablecoin inflows reaching $35 billion this year, pushing the total stablecoin value beyond $160 billion.

Circle has contributed significantly to stablecoin inflows, while retail trading in South Korea has averaged $2 billion daily, showcasing altcoins’ growing influence. Thielen speculated that the $278 billion Chinese stimulus could lead to more capital flowing into crypto, as over half of Bitcoin is mined in China. The increased liquidity has lowered Bitcoin’s 30-day realized volatility to 41%, encouraging larger institutional investments.

Shiba Inu’s 43% price jump indicates potential investor excitement, with metrics like volume and whale transactions hitting 10-week highs. Thielen concluded that a significant bull run could be on the horizon, potentially spurring further interest in the crypto sector.