Bitcoin targets $70K as Chinese stimulus boosts crypto market

Bitcoin (CRYPTO:BTC) surged past $65,000 on September 27, fueled by retail participation and expectations of a liquidity boost from China's $278 billion stimulus plan.

Analysts suggest this could pave the way for a parabolic rally in both Bitcoin and altcoins in the fourth quarter of 2024.

The price rise is linked to the Federal Reserve’s recent 50 basis point rate cut, which has also positively impacted altcoins.

According to 10x Research, altcoins have experienced notable rallies after a prolonged downturn, with more growth expected in the coming months.

Markus Thielen, lead analyst at 10x Research, remarked, "With Bitcoin breaking above $65,000, we anticipate a swift move toward $70,000, followed by new all-time highs."

Since September 17, the market cap of altcoins has risen by 15%, signaling increased investor confidence in the crypto market.

The anticipated $278 billion capital injection from China is also expected to fuel further momentum, creating a favorable environment for growth.

Thielen added, "The Chinese stimulus plan could ignite a parabolic rally in cryptocurrency prices, fueled by increasing global liquidity."

Retail investors have played a significant role in Bitcoin’s recent surge.

After months of minimal activity, they are re-entering the market, pushing Bitcoin’s price higher.

Institutional investors are also expected to increase their positions as Bitcoin’s 30-day realized volatility declines, leading to potential market gains.

As retail and institutional investors align, the crypto market is expected to see continued upward momentum, with Bitcoin potentially reaching $70,000 before October ends, according to analysts at 10x Research.

At press time, the Bitcoin price was $66,071.52.