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Bitcoin (BTC) has recently climbed above the $65,000 mark, buoyed by stablecoin inflows and China's economic stimulus measures. These factors have injected fresh liquidity and optimism into the market, pushing Bitcoin toward new heights. With positive momentum building, Bitcoin is now eyeing the $70,000 threshold as its next target.

According to 10x Research’s report, BTC’s surge is attributed to a combination of stablecoin liquidity and a global recovery in the crypto market.

The report highlights that nearly $10 billion in stablecoins were issued following the Federal Reserve’s July 31 FOMC meeting, which postponed a critical decision on rate cuts. This influx of liquidity has had a significant impact on the crypto market, as stablecoins are a key asset for traders and investors looking to shift positions into Bitcoin and other cryptocurrencies. 

The total value of outstanding stablecoins now exceeds $160 billion, with Circle’s USD Coin gaining particular traction among institutional investors. The increasing adoption of stablecoins like USD Coin reflects a broader trend of institutional participation in the crypto space, as these assets provide a stable on-ramp for entering and exiting volatile markets like Bitcoin.

China’s $278 billion stimulus plan is also playing a crucial role, potentially igniting a parabolic rally in cryptocurrency prices due to increased global liquidity. Chinese crypto brokers have seen over $40 billion in inflows in the first half of the year, with a significant portion coming from large transactions.

Despite the rally, Bitcoin’s volatility remains subdued, with a 30-day realized volatility below the five-year average at 41%. This lower volatility allows institutional traders to take on larger positions, increasing the likelihood of a Q4 rally. 

Apart from various macroeconomic factors, the release of Binance’s ex-CEO, Changpeng Zhao, could potentially contribute to creating a bullish environment in the crypto market, thereby boosting the prices of several cryptocurrencies.

If the report’s predictions hold true, Bitcoin could reach $70,000 within weeks, potentially setting new all-time highs by late October.