BITCOIN FOMO REACHES A BOILING POINT: Will $70K and New Record Highs Be the Next Stop?

A Shocking $10 Billion Surge in Stablecoin Minting Has Infused Cryptos with Unprecedented Liquidity, According to 10X Research's Markus Thielen

The crypto market is on the cusp of a seismic shift, as FOMO returns with a vengeance. Bitcoin (BTC) has broken above $65,000, and analysts are predicting a swift move toward $70,000, followed by new all-time highs in the near term.

But what's driving this sudden surge? 10X Research's Markus Thielen sheds light on a remarkable $10 billion increase in stablecoin minting over the past weeks. This influx of liquidity has flooded the crypto market with an unprecedented level of capital, sparking a flurry of activity that could be the catalyst for a major rally.

The Force Behind the FOMO

Thielen notes that nearly $10 billion was minted on Circle's USDC following the Fed's mid-September rate cut. This represents a staggering 40% share of recent stablecoin inflows, far surpassing Tether's USDT which is typically associated with capital preservation.

But what does this mean for the crypto market? Thielen suggests that USDC minting could indicate a rise in DeFi activity, as Circle's USDC is often seen as a safe-haven asset. This increase in DeFi involvement could have far-reaching consequences, potentially leading to a surge in Bitcoin's price.

China's Massive Stimulus Measures: The Perfect Storm

Thielen also points to China's massive monetary and fiscal stimulus measures announced just after the Fed rate cut. These measures could trigger large capital outflows from China and into cryptos, further fueling the FOMO that's already gripping the market.

With 55% of currently mined bitcoins coming from Chinese mining pools, a sudden shift in investor sentiment could have significant repercussions for the global cryptocurrency landscape.

Will $70K and new record highs be the next stop for Bitcoin? Only time will tell, but one thing's certain - FOMO is back, and it's here to stay.