10x Research: Bitcoin is expected to reach $70,000 in the next two weeks and hit a new high at the end of October

Odaily Odaily News 10x Research said in its latest report that after the July 31 FOMC meeting, the Federal Reserve postponed a key rate cut decision until September, and the issuance of stablecoins increased sharply. In the next few weeks, the issuance of nearly $10 billion in stablecoins will flood the cryptocurrency market with liquidity, greatly exceeding the liquidity of Bitcoin ETFs. Circle is usually aimed at more regulated institutions, but the recent stablecoin inflow has been as high as 40%, indicating an increase in the allocation of large market participants. USDC minting may indicate an increase in DeFi activity. So far this year, stablecoin inflows have reached $35 billion, bringing the total value of stablecoins in circulation to $160 billion. After the July FOMC meeting, U.S. bond yields fell sharply, and the 10-year U.S. Treasury yield fell below the 4.0% threshold, triggering a recovery in DeFi activity. In August, Aave's lending platform monthly fees soared to $43 million, exceeding the peak of $42 million in March 2024. Although activity slowed in September, activity and fees may rebound after the Fed's recent rate cut. There has been a notable shift since last week’s FOMC meeting, with Bitcoin’s dominance having weakened while Ethereum’s gas fees have soared, aided by a surge in Altcoin activity across the ecosystem. If the Fed remains willing to cut rates, the pursuit of high-beta Altcoin could gain further momentum. Retail cryptocurrency trading activity in South Korea supports this trend, with daily trading volumes currently hovering around $2 billion. Although still below the $13 billion seen in early March 2024, Altcoin have dominated trading over the past week, surpassing Bitcoin. If Trump is re-elected, he may seek to over-stimulate the U.S. economy, which could force the Fed to reverse its rate-cutting cycle as early as the first half of 2025. However, the focus for now is on Bitcoin’s recent breakout above $65,000, with a target of $70,000 in the next two weeks and an all-time high expected by the end of October. In addition, the likelihood of a fourth-quarter rally is extremely high, and the gains may have already begun.