Originally published on: September 28, 2024
Bitcoin has recently experienced a breakout from its downtrend, with the cryptocurrency now eyeing the $70,000 milestone, according to a report from 10x Research. This surge in price is attributed to various driving factors, including an increase in stablecoin liquidity and a global recovery in the crypto market.
The recent release of Changpeng “CZ” Zhao, Binance founder, from a US federal prison on Sept. 27, has also contributed to the positive momentum in the market. Additionally, nearly $10 billion in stablecoins were issued following the Federal Reserve’s FOMC meeting in July, injecting liquidity into the crypto market.
The total value of outstanding stablecoins has now exceeded $160 billion, with significant inflows tied to Circle’s USD Coin (USDC), popular among institutional investors. The report also highlights China’s stimulus measures and the country’s role in the Bitcoin rally, with Chinese crypto brokers seeing over $40 billion in inflows in the first half of the year.
Despite the rally, Bitcoin’s volatility remains low, with a 30-day realized volatility below the five-year average. The report predicts that Bitcoin could reach $70,000 in the coming weeks, potentially pushing the price even higher.
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