Bitcoin Analysts Predict Further All-Time Highs After Surge

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10xResearch analysts, who successfully forecasted the Bitcoin price surge to a new all-time high earlier this year, have adopted a bullish outlook once more. In a recent report by 10xResearch Head of Research, Markus Thielen, the analysts highlight several factors contributing to the positive shift in BTC price. This development could potentially lead to another run-up toward a new all-time high for Bitcoin, indicating the potential onset of a new bull market.

Fed’s Rate Cut Sparks Bitcoin Surge

Following the Federal Reserve’s decision to lower interest rates by 0.5 bps earlier this month, Bitcoin’s price has entered an upward trajectory. It increased from around $53,000 to surpassing $66,000 within weeks. However, analysts believe the upward trend is far from over, predicting additional gains.

In their report, 10xResearch analysts note the surge in stablecoin minting alongside billions in inflows from Chinese over-the-counter brokers as key reasons the rally may persist. Since the Fed’s interest rate cuts, roughly $10 billion in new stablecoins have entered circulation. This influx is beneficial for the Bitcoin market, indicating new investment is being introduced. The report highlights that stablecoin inflows have exceeded $35 billion year-to-date.

Another encouraging trend is the increase in decentralized finance (DeFi) activities. There’s been a growth in fee revenue, suggesting more participation in the space. “While activity has slowed in September, both activity and fees are expected to rebound following the Fed’s recent rate cut,” the report noted.

Bitcoin breaks downtrend — Source: 10xResearch

The analysts are optimistic that Bitcoin is now aiming for new all-time highs after breaking free from a downtrend that has persisted for months. “With Bitcoin surpassing $65,000, we expect a rapid move toward $70,000, followed by new all-time highs in the near future,” the analyst remarked.

Altcoin Season Approaches

The Fed rate cuts have not only benefited Bitcoin but have also positively impacted the altcoin market, which has experienced a more than 20% increase in market cap this month, indicating that it is also following the bullish trend initiated by Bitcoin.

Notably, Bitcoin’s market dominance has declined since the Fed’s announcement, suggesting that altcoins are gaining traction. If the Bitcoin dominance continues to drop, it could herald the beginning of another altcoin season.

“A significant shift has occurred since last week’s FOMC meeting: Bitcoin’s dominance has declined, while Ethereum gas fees have risen, driven by a spike in altcoin activity throughout the ecosystem,” the analysts noted. “If the Federal Reserve maintains a willingness to cut rates further, interest in high-beta altcoins will likely continue to grow.”