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

A recent surge of $10 billion in stablecoin minting has significantly increased liquidity in the crypto market, as noted by Markus Thielen of 10X Research. This influx follows impressive gains after the U.S. Federal Reserve’s mid-September rate cut and stimulus measures from China, which have helped Bitcoin (BTC) break out of its downward trend.

In his latest report titled “FOMO is Back: Are You Holding Enough Bitcoin and Altcoins to Ride the New Wave,” Thielen suggests that Bitcoin’s rise above $65,000 could lead to a swift climb toward $70,000 and potentially new all-time highs soon.

Thielen observed that the minting of stablecoins surged after the Fed’s July meeting, where rates were left unchanged but a September easing was hinted at. This led to nearly $10 billion in stablecoin minting, which flooded the crypto markets and outpaced spot ETF flows.

Notably, Circle’s USDC accounted for 40% of recent stablecoin inflows, which is a significant increase compared to the typical share of Tether’s USDT. Thielen highlighted that while USDT minting on TRON often signals capital preservation, the USDC minting could suggest a rise in DeFi activity.

Additionally, with 55% of mined Bitcoin coming from Chinese mining pools, Thielen pointed out that China’s recent monetary and fiscal stimulus could lead to substantial capital outflows into cryptocurrencies.

He concluded that the probability of a rally in Q4 is exceptionally high, with significant gains likely to be front-loaded. This could ignite further FOMO within the crypto space.

As of now, Bitcoin is up 2.3% in the last 24 hours and nearly 12% month-over-month, trading at $66,300, marking its strongest position since late July.