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Markus Thielen, Head of Research at 10x Research, disclosed that the September rate cuts by the Federal Reserve and China’s stimulus have caused a new FOMO wave in the crypto industry. 
He noted that Bitcoin had surged 5%, Ethereum had risen 11%, and altcoins like SHIB, ENA, and SEI gained 36%, 51%, and 54%, respectively, since the rate cuts.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Thielen’s analysis revealed an altcoin explosion and an acceleration in stablecoin minting. Chinese OTC crypto brokers reported over $120 billion (~$20B per quarter) in inflows for the last six quarters. According to the report, $10B in stablecoins were issued within the last few weeks, flooding the crypto market with liquidity that significantly surpassed Bitcoin ETF flows. He added that Bitcoin’s break above $65K was probably the first step towards the $70K mark and maybe a series of all-time highs in the near future.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<h3 id="span-style-font-weight-400-analyst-sees-another-bitcoin-and-altcoin-boom-span">Analyst sees another Bitcoin and altcoin boom</h3>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 FOMO is Back: Are You Holding Enough Bitcoin and Altcoins to Ride the Next Wave?
 👇1-11) Since the Fed’s September rate cut, Bitcoin has gained 5%, while Ethereum has surged 11%, and certain altcoins have seen impressive gains—+54% for ENA, +51% for SEI, and +36% for Shiba Inu.… <a href="https://t.co/QK6hExh4lk" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/QK6hExh4lk</a>
 — 10x Research (@10x_Research) <a href="https://twitter.com/10x_Research/status/1839469520056094858?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">September 27, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Thielen’s report attributed the decline in Bitcoin’s dominance and the spike in Ethereum gas fees to a surge in altcoin activity. He claimed that the ‘DeFi renaissance’ was ignited by the 10-year bond yield drop below the 4.0% threshold. The report revealed that USDC minting indicated a rise in DeFi activity as YTD stablecoin inflows reached $35 billion, pushing the total stablecoin value to over $160 billion.
The report declared that Circle disproportionately accounted for 40% of the latest stablecoin inflows. It also noted that South Korea’s retail crypto activity supported this trend as daily trading volumes averaged $2 billion, proving that altcoins’ trade dominance surpassed Bitcoin.&nbsp;&nbsp;
<blockquote>
 “In just the first half of this year, inflows have already exceeded $40 billion, with 55% of the total value coming from transactions over $1 million, likely driven by high-net-worth individuals or corporate entities.”
 –<a href="https://mail.10xresearch.co/p/fomo-is-back-are-you-holding-enough-bitcoin-and-altcoins-to-ride-the-next-wave#:~:text=In%20just%20the%20first%20half%20of%20this%20year%2C%20inflows%20have%20already%20exceeded%20%2440%20billion%2C%20with%2055%25%20of%20the%20total%20value%20coming%20from%20transactions%20over%20%241%20million%2C%20likely%20driven%20by%20high%2Dnet%2Dworth%20individuals%20or%20corporate%20entities." rel="noopener noreferrer nofollow" target="_blank">Markus Thielen</a>
</blockquote>
Thielen observed that the Fed rate cuts and China’s stimulus measures could trigger significant outflows of capital from China into the crypto market since over 55% of Bitcoin was mined by Chinese pools.&nbsp;&nbsp;&nbsp;
<h3 id="span-style-font-weight-400-the-chinese-stimulus-plan-impacts-crypto-span">The Chinese stimulus plan impacts crypto</h3>
According to the analyst, the $278 billion Chinese stimulus plan fueled global liquidity and ignited a parabolic rally in crypto prices. The surge in liquidity coincided with a drop in Bitcoin’s 30-day realized volatility to 41%. Thielen noted that institutional traders were likely to take on bigger positions with lower volatility.
Santiment shared <a href="https://x.com/santimentfeed/status/1839437731916652955" rel="noopener noreferrer nofollow" target="_blank">information</a> showing a 43% surge in Shiba Inu’s price, a potential indication of FOMO. The analytics firm considered three on-chain metrics: volume, circulation, and whale transaction count. According to Santiment, Shiba Inu’s social dominance increased; the volume, circulation, and whale transactions spiked to 10-week highs.
Thielen claimed that a Q4 rally was likely, as a major bull run in the crypto space was on the horizon, and it could spark more FOMO across the industry.&nbsp;&nbsp;

Analyst predicts Bitcoin and altcoin bull run as FOMO returns

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