Analyst Markus Thielen of 10x Research said that the US Federal Reserve’s September rate cuts and the Chinese government’s stimulus have caused a new wave of FOMO (fear of missing out) in crypto markets. As a result of these measures, Bitcoin has risen by 5%, Ethereum by 11%, and altcoins such as Shiba Inu (SHIB), ENA, and SEI have seen explosive gains of between 36% and 54%.
Thielen also noted a sharp increase in stablecoin issuance, which has significantly exceeded flows from Bitcoin ETFs. In particular, Chinese crypto brokers working with over-the-counter (OTC) transactions have reported inflows of about $120 billion over the past year and a half. In recent weeks, $10 billion worth of stablecoins have been issued, increasing liquidity in the market.
The analyst predicts that Bitcoin’s breakout above $65K could be the start of a move to $70K and a new cycle of all-time highs. His report also highlights Bitcoin’s declining market dominance and the rise of DeFi activity, which has led to higher fees on the Ethereum network.
The report also pays special attention to the USDC stablecoin, the issuance of which has become an indicator of the growth of DeFi activity. This year, the total inflow of stablecoins has reached $35 billion, which has increased their total value to $160 billion. Moreover, a significant share of these funds came from large-scale transactions, indicating the involvement of corporate and wealthy investors.
China’s stimulus plan, which includes a package of measures worth $278 billion, has also affected the crypto market, increasing global liquidity and reducing Bitcoin volatility.