Markus Thielen, Head of Research at 10x Research, predicts a significant bull run in Bitcoin and altcoins following recent economic shifts.
Thielen attributes this renewed surge to the Federal Reserve’s rate cuts in September and China’s stimulus efforts, which have sparked a wave of FOMO (Fear of Missing Out) in cryptocurrency.
According to Thielen’s research, Bitcoin saw a 5% rise, Ethereum jumped by 11%, and altcoins like SHIB, ENA, and SEI witnessed substantial gains of 36%, 51%, and 54%, respectively. These increases followed the Fed’s rate cuts, driving optimism in the market. Additionally, an altcoin explosion and a significant rise in stablecoin minting were observed, contributing to the rising liquidity across the sector.
FOMO is Back: Are You Holding Enough Bitcoin and Altcoins to Ride the Next Wave?1-11) Since the Fed’s September rate cut, Bitcoin has gained 5%, while Ethereum has surged 11%, and certain altcoins have seen impressive gains—+54% for ENA, +51% for SEI, and +36% for Shiba Inu.… pic.twitter.com/QK6hExh4lk
— 10x Research (@10x_Research) September 27, 2024
Altcoin surge and stablecoin minting
Thielen highlighted the increasing activity in the altcoin market, with Bitcoin’s dominance declining and Ethereum gas fees spiking due to heightened demand. One major factor behind this activity is the drop in the 10-year bond yield, which fell below the 4% mark, triggering a resurgence in decentralized finance (DeFi) projects.
The issuance of stablecoins has accelerated, with $10 billion being minted in recent weeks alone. Circle has been responsible for 40% of the latest stablecoin inflows. Year-to-date inflows for stablecoins have reached $35 billion, pushing their total value to over $160 billion. South Korea has also played a role in this trend, as its retail crypto activity has surged, with daily trading volumes averaging $2 billion, primarily driven by altcoins.
Institutional traders and Chinese stimulus impact
The ongoing Chinese stimulus plan, valued at $278 billion, has significantly boosted global liquidity, further strengthening the cryptocurrency market. Thielen noted that this influx of capital and a drop in Bitcoin’s 30-day realized volatility to 41% have attracted institutional traders. Due to the reduced volatility, these traders are now likely to take larger positions in the market.
Thielen also pointed to significant capital outflows from China, with over 55% of Bitcoin mined by Chinese mining pools. The capital flight is expected to flow into the crypto market, contributing to the continued rally in digital assets.
Shiba Inu surge and FOMO indicators
Santiment, an analytics firm, reported a 43% surge in the price of Shiba Inu, one of the standout performers in the altcoin market. On-chain metrics such as volume, circulation, and whale transaction counts reached 10-week highs. Social media discussions around Shiba Inu also spiked, signaling growing interest and potential FOMO within the market.
Thielen’s analysis suggests that the combination of liquidity boosts, stablecoin inflows, and growing interest in altcoins will likely fuel a continued bull run in Q4. With strong institutional and retail involvement, this trend could push Bitcoin toward the $70,000 mark and lead to further all-time highs across the crypto sector.
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