Bitcoin targets $70K as stablecoin inflows and China stimulus boost rally
2024-09-28

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. 
The report 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.
The change in the tide also comes amid Changpeng “CZ” Zhao, Binance founder and former CEO, being released from United States federal prison on Sept. 27.
Stablecoins flood market post-FOMC meeting
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 BTCUSD.
The total value of outstanding stablecoins now exceeds $160 billion, with a large portion of these inflows linked to Circle’s USD Coin USDCUSD, which is becoming increasingly popular among institutional investors.
Chinese stimulus implications
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:
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.”
Bigger bets, lower volatility
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.
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.