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According to a recent report from 10x Research, Bitcoin has broken out of its ongoing recent downtrend, and the cryptocurrency is now setting its sights on the $70,000 milestone again.&nbsp;
The <a data-ct-non-breakable="null" href="https://mail.10xresearch.co/p/fomo-is-back-are-you-holding-enough-bitcoin-and-altcoins-to-ride-the-next-wave" rel="noopener noreferrer nofollow" target="null" text="null" title="null">report</a> attributes the price surge to a combination of driving factors, including an influx of stablecoin liquidity and a general global recovery for the crypto market.
<blockquote>
 “[...] our immediate attention is on Bitcoin’s recent breakout above $65,000, with a target of $70,000 in the next two weeks and expectations of new all-time highs by late October.”
</blockquote>
The change in the tide also comes amid Changpeng “CZ” Zhao, Binance founder and former CEO, being <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-founder-cz-walks-free-from-us-prison" rel="noopener noreferrer nofollow" target="null" text="null" title="null">released from United States federal prison</a> on Sept. 27.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-significant-rally-2024-10x-research" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Bitcoin poised for potential rally as FTX payout looms and Fed shifts</a>
<h2 id="stablecoins-flood-market-post-fomc-meeting">Stablecoins flood market post-FOMC meeting</h2>
According to the report, nearly $10 billion in stablecoins were issued in the weeks following the Federal Reserve’s July 31 Federal Open Market Committee (FOMC) meeting, which postponed a critical rate cut decision.
The injection of this liquidity into the crypto market has had a significant impact, as stablecoins are a fundamental asset traders and investors use to shift their positions to other cryptocurrencies like Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>).
The total value of outstanding stablecoins now exceeds $160 billion, with a large portion of these inflows linked to Circle’s USD Coin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/usdc-price-index" rel="noopener noreferrer nofollow" target="null" text="null" title="null">USDC</a>), which is becoming increasingly popular among institutional investors.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-metric-institutional-interest-stablecoin-minting-ratio" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Institutions not so interested in Bitcoin at $58K, metric shows</a>
<h2 id="chinese-stimulus-implications">Chinese stimulus implications</h2>
The 10x Research report also highlighted the impact of China’s recently announced stimulus measures on the BTC price trajectory and the country’s role in the 2014 BTC rally:
<blockquote>
 “The $278 billion Chinese stimulus plan could ignite a parabolic rally in cryptocurrency prices, fueled by increasing global liquidity.”
</blockquote>
The report estimates that Chinese crypto brokers have seen over $40 billion in inflows in just the first half of the year, with 55% of the volume coming “from transactions over $1 million.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/stablecoin-issuance-could-be-key-bitcoin-next-rally-10x-research" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Stablecoin issuance could be key to the next Bitcoin rally — 10x Research</a>
<h2 id="bigger-bets-lower-volatility">Bigger bets, lower volatility</h2>
Despite the rally in the crypto market, BTC volatility remains notably subdued, with a 30-day realized volatility below the five-year average at 41%, according to the report.
<blockquote>
 “With lower volatility, institutional traders—who adhere to strict risk management—can take on bigger positions [...] The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded.
</blockquote>
If the report is accurate in its predictions, the $70,000 BTC mark could occur within weeks, potentially propelling the price of BTC beyond that milestone.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/worldcoin-fined-dmm-bitcoin-system-face-ban-asia-express/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Worldcoin fined again! Crypto store clerk runs off with $500K cash: Asia Express</a>

Bitcoin targets $70K as stablecoin inflows and China stimulus boost rally

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