Bitrabo Editorial
According to Markus Thielen, head of research at 10x Research, Bitcoin (BTC) surpassing $65,000 could significantly increase the likelihood of a broader cryptocurrency rally in the last quarter of 2024.
Bitcoin Surge May Trigger Altcoin Interest
Thielen recently shared insights in a report outlining key indicators that could pave the way for a potential crypto upswing later in 2024. He pointed out two primary elements that could drive growth in the crypto markets.
Firstly, the increase in stablecoin issuance suggests a growing interest from investors and traders looking to re-engage with the crypto space.
After the Federal Open Market Committee (FOMC) meeting on July 31, nearly $10 billion worth of stablecoins were created, enhancing market liquidity and even outpacing Bitcoin ETF inflows.
The report states:
Circle, usually focused on more regulated entities, accounted for a significant 40% of recent stablecoin issuances, indicating a greater involvement from larger market participants. In contrast to USDT issuance on Tron, which is largely seen as capital preservation, USDC issuance suggests a rise in decentralized finance (DeFi) activities. Year-to-date, stablecoin deployments totaled $35 billion, bringing the total outstanding stablecoins to $160 billion.
Thielen highlights Bitcoin’s recent climb above $65,000, stating it may quickly approach the crucial $70,000 mark before striving for a new all-time high (ATH).
Additionally, the report indicates that the decreasing Bitcoin dominance (BTC.D) after the September FOMC meeting may signal an impending altcoin surge, especially as Ethereum (ETH) network gas fees rise, likely due to increased altcoin trading on the blockchain.
The graph below illustrates the upward trend in Ethereum gas fees, jumping from $1.89 million on August 13 to consistently over $7 million since September 22.
The report also posits that if the US Federal Reserve continues its rate cuts, high-risk altcoins might become more appealing to traders.
Positive Cryptocurrency Trends in South Korea and China
Thielen’s report points to increasing trading volumes in South Korea as another factor supporting the altcoin trend. The country’s daily trading volume now averages around $2 billion, with altcoins leading over Bitcoin.
Notably, Shiba Inu (SHIB) has returned to the top spot in South Korean trading volume, hinting at heightened speculation and potentially setting the stage for an altcoin-dominant market by Q4.
Lastly, the report notes that Chinese over-the-counter (OTC) brokers have continuously reported quarterly inflows of approximately $20 billion over the last six quarters, amounting to a total of $120 billion. Recently, the Chinese central bank cut its reserve requirement ratio (RRR) by 50 basis points to inject liquidity, which could trigger a significant increase in digital asset prices later this year.
The report concludes with a forecast that Bitcoin may aim for the $70,000 target within the next two weeks, possibly achieving a new ATH by the end of October. At the time of writing, BTC is trading at $66,298, reflecting a 1.4% increase in the past 24 hours.
