Bitcoin FOMO Is Back: $70K and Then New Record Highs in Sight, Says Analyst

According to 10X Research co-founder & chief investment officer Markus Thielen, the crypto market has been awash with liquidity in recent weeks as $10 billion worth of stablecoins minted.

New research out of The TIE shows impressive gains since the U.S. Federal Reserve’s mid-September rate cut and continued China stimulus plans have finally driven bitcoin, BTC, out from a 3-month downtrend.

Bitcoin FOMO Is Back: $70K and Then New Record Highs in Sight, Says Analyst

Bitcoin FOMO Is Back Again?

That is the name of the latest report published by 10X Research’s Markus Thielen [“FOMO is Back— Are You Holding Enough Bitcoin and Altcoins to Ride Next Wave? “Bitcoin just broke the $65,000, and we have to say that it is likely on its way towards $70,000 very soon, with a new ATH coming in not so long now,” he wrote.

After the Fed announced no rate cut in July but did say one is probably coming in September, Thielen documented a major uptick in the minting of stablecoins.

Thielen stated that this level of minting was followed by nearly $10 billion in stablecoin creation in the following weeks, releasing a tidal wave of liquidity into crypto markets that greatly overshadowed spot ETF flows.

Of note, said Thielen, Circle’s share of recent stablecoin inflows relative to Tether’s USDT was far larger and stood at 40%. This USDC minting matters he explained, since while USDT minting on TRON is generally seen as a market risk off play, this could signal more DeFi activity.

According to Thielen, this would drive “capital flows out of China and into cryptos,” a phenomenon that could potentially lead to the PBOC inching in on miners while mentioning the fact that along with other Chinese mining pools, more than a half—about 55% – all presently minded bitcoins sprout from China.

Thielen summed it up this way: “The probability of a Q4 rally is extremely high & gains are likely to be front-loaded. A major uptick could be in the offing, fueling further FOMO around the crypto landscape.

Bitcoin is up 2.3% on the day and almost 12% over the month, to $66,300: it stands at its highest level since the end of July.

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