10xResearch analysts who predicted correctly Bitcoin price in the run-up to a modern record high earlier in the year, they became bullish again. In a recent report by 10xResearch head of research, Markus Thielen, analysts point to a number of factors that caused the BTC price to augment. As before, this is a development that could lead to a modern record high for Bitcoin’s price, which could signal the beginning of another bull market.

Fed’s interest rate cut sparks the rise of Bitcoin

Following the Federal Reserve’s decision to cut interest rates by 0.5 basis points at the beginning of the month, Bitcoin’s price is on a positive upward trend. It went from trending around $53,000 to over $66,000 in a matter of weeks. However, the upward trend may be far from over as analysts see continued gains.

In the report 10xResearch analysts point to the rise of stablecoin mintages and billions of dollars in inflows from Chinese over-the-counter brokers as reasons why growth may continue. About $10 billion worth of modern stablecoins have been minted since the Fed cut interest rates. This is obviously positive for the Bitcoin market as it means there is an influx of modern inflows. The report explains that the annual inflow of stablecoins has already exceeded $35 billion.

Another positive development is the augment in decentralized finance (DeFi) activity across the space. Fee revenues have increased, signaling greater participation. “Although activity declined in September, activity and fees may increase following the Fed’s recent interest rate cut,” the report said.

Analysts believe that Bitcoin’s price is currently hitting modern all-time highs after breaking a downtrend that has plagued it for months. “With Bitcoin breaking above $65,000, we expect a quick move towards $70,000 followed by new all-time highs in the near future,” the analyst said.

Altcoin season is coming

The Fed interest rate cuts weren’t just positive for the price of Bitcoin because The altcoin market also followed suit. This month alone, there has been a more than 20% augment in the market capitalization of altcoins, which shows that they are also following the bullish trend set by Bitcoin.

Since the Fed’s announcement, there has been a noticeable decline in BTC dominance. This suggests that altcoins are gaining popularity and if Bitcoin domination continues to decline, this could mean the beginning of another altcoin season.

“There has been a noticeable shift following last week’s FOMC meeting: Bitcoin’s dominance has waned while Ethereum gas fees have surged, driven by a surge in altcoin activity across the ecosystem,” analysts said. “If the Federal Reserve remains open to interest rate cuts, the search for high-beta altcoins will likely gain further momentum.”

Featured image created with Dall.E, chart from Tradingview.com