Bitcoin Targets $70,000 on Stablecoin Flows and Chinese Incentives
According to the latest report from 10x Research, Bitcoin has broken its current downtrend and is headed back toward the $70,000 target. The report attributes the price increase to factors such as increased stablecoin liquidity and a recovery in the overall global crypto market.
â[...] We are mindful of Bitcoinâs recent breakout above $65,000; we expect to reach $70,000 in the next two weeks and reach new all-time highs by the end of October,â the report says.
This shift also coincides with the release of Binance founder and former CEO Changpeng âCZâ Zhao from a US federal prison on September 27.
Stablecoin Flows After FOMC Meeting
According to the report, almost $10 billion worth of stablecoins were released following the Federal Reserveâs Federal Open Market Committee (FOMC) meeting on July 31. The influx of this liquidity into the crypto market has had a significant impact, as stablecoins are a key asset that investors use to transition to other cryptocurrencies like Bitcoin.
There is currently over $160 billion in stablecoin value, with a large portion of this flow linked to Circleâs USD Coin (USDC), which is increasingly popular among institutional investors.
The Effects of Chinese Stimulus
The 10x Research report also highlighted the impact of Chinaâs newly announced stimulus measures on BTC prices and the countryâs role in the 2014 BTC rally: âThe $278 billion Chinese stimulus plan could trigger a parabolic rally in cryptocurrency prices with increased global liquidity.â
The report estimates that Chinese crypto brokers saw more than $40 billion in flows in the first half of the year, with 55% of that coming from transactions over $1 million.
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