Bitcoin has recently surged past the $65,000 mark

Bitcoin has recently surged past the $65,000 mark, driven by factors such as stablecoin inflows and China’s new stimulus measures. According to a report by 10x Research, Bitcoin has broken out of its previous downtrend, with a new price target of $70,000 within the next couple of weeks. Analysts are optimistic, predicting that Bitcoin could reach new all-time highs by late October.

• The rally is partially fueled by an influx of stablecoins into the crypto market, with nearly $10 billion in stablecoins issued following the Federal Reserve’s July 31 Federal Open Market Committee (FOMC) meeting. This influx is significant, as stablecoins often serve as a bridge for investors transitioning into cryptocurrencies like Bitcoin. Currently, the total market value of outstanding stablecoins surpasses $160 billion, with USD Coin (USDC) becoming increasingly favored by institutional investors.

China’s recently announced $278 billion stimulus package is also playing a role in Bitcoin's upward momentum. The report from 10x Research points out that Chinese crypto brokers have already seen over $40 billion in inflows this year, with a notable percentage coming from large transactions over $1 million. The liquidity boost from this stimulus is expected to support a broader rally in cryptocurrency markets.

Despite the upward trend, Bitcoin’s volatility remains lower than its five-year average, with realized 30-day volatility sitting at 41%. This reduced volatility could attract institutional investors, who often require stable market conditions for risk management. Analysts predict that the rally may be front-loaded, with significant gains likely in the fourth quarter, potentially pushing Bitcoin beyond the $70,000 milestone soon.