10x Research analyzes the impact of U.S. interest rate cuts
The United States has begun an interest rate cut cycle, is a new wave of cryptocurrency surge coming? Markus Thielen, founder of the cryptocurrency analysis agency 10x Research, published an article on September 25 to discuss the impact of U.S. interest rate cuts on the market.
Thielen believes that as the United States begins to cut interest rates, the theme and narrative of the cryptocurrency market have clearly shifted, and savvy traders are quickly seizing emerging opportunities. Ball's optimistic remarks, the presumptive American League chairman, were the main catalyst for the market's rise. Ball's firm support for the labor market even if the economy is strong triggered this wave of gains.
Instead, he feels that investors are paying less attention to the U.S. presidential election and more to the knock-on effects of economic weakness in China and Europe.
As the global economy slows and political uncertainty rises, central banks in major countries are stepping up efforts to stimulate the economy. Lower interest rates and policies to inject liquidity may cause funds to flow into speculative assets.
Smart traders are betting on these 7 coins
Thielen pointed out that as the Bitcoin market improves, savvy traders have begun to accumulate undervalued altcoins. He listed the following 7 currencies, which belong to the AI, synthetic dollar and public chain (Layer 1) tracks.
Bittensor（$TAO）
Athena ($ENA)
You are（$SIX）
Aptos（$APT）
Sui ($SUI)
NEAR Protocol（$NEAR）
The Graph（$GRT）
What this trend tells us is that the market seems to be moving away from Bitcoin and income-based tokens towards more speculative altcoins. With the shift in trends triggered by the U.S. interest rate cut, altcoins have performed well, riding the momentum under Bitcoin’s umbrella.
Thielen predicts that the cryptocurrency market will usher in a strong rebound in the fourth quarter, and traders’ focus has shifted from Bitcoin and revenue-generating tokens (RWA) to preparing for the potential DeFi boom.
Bitcoin may hit bottom, could break through $70,000
Thielen noted that from a technical perspective, Bitcoin has experienced a volatile pullback since mid-March, setting four lower highs. When Bitcoin breaks through $65,000, it represents a reversal in the downward trend, suggesting that Bitcoin may once again hit above $70,000.
On September 9, Bitcoin became overbought after a short-term rally, but the mid-term reversal indicator has been fully corrected, showing signs of the market bottoming, and the possibility of further breakthroughs in the future has increased significantly.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice. The analysts’ views are for reference only. Users should consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.
