The crypto market awaits momentum from China's economic stimulus plan

Week of October 1-7, 2024

10x Research has revealed that Bitcoin (BTC) has a chance to reach $70,000 soon, supported by an influx of nearly $10 billion over the past few weeks following the U.S. Federal Reserve's interest rate cuts. Additionally, the Chinese government is injecting liquidity into its economy through a $278 billion economic stimulus plan.

Spot Bitcoin ETFs saw continuous inflows for seven days last week, with a net inflow of $494.27 million on Friday, September 27—marking the highest level in nearly four months—primarily driven by 21Shares’ ARKB fund.

Spot Ethereum ETFs experienced their highest weekly inflows since early August last week, reversing six consecutive weeks of negative figures, with BlackRock’s fund surpassing $1 billion in net assets for the first time.

Data from Bloomberg Intelligence indicates that total assets in U.S. ETFs exceeded $10 trillion for the first time on September 27. This was partly due to over $20 billion in inflows into cryptocurrency ETFs in 2024. 

VanEck predicts that the price of Solana (SOL) could rise to $330, capturing 50% of Ethereum’s (ETH) current market cap. Its speed and efficiency in transactions give it a significant advantage over Ethereum (ETH) in payment and stablecoin transfer sectors.

Major fintech companies like Robinhood and Revolut are planning to issue their own stablecoins as a result of clearer regulations in Europe, with Tether (USDT) currently holding over 75% of the total stablecoin market share.

PayPal has allowed its business account customers to trade and exchange cryptocurrencies directly through their accounts, a feature available only in the U.S. except in New York. The company also stated that this feature was introduced for business owners seeking easier cryptocurrency payment options for their customers.

Technical Analysis

Bitcoin (BTC)

Bitcoin (BTC) continues its recovery, testing the first resistance level at $65,000. If it surpasses this level, it is expected to target the key resistance level at $70,000, signaling a full bullish reversal. This week, the support price is at $62,000. If it holds this level, it could present an important buying opportunity before a potential sustained upward trend.

• Support: 2,000,000 THB / 62,000 USD
• Resistance: 2,520,000 THB / 70,000 USD
  

Ethereum (ETH)

Ethereum (ETH) is experiencing a slowdown in buying momentum and has yet to break the first resistance at $2,500. It may be wise to wait for buying opportunities at or above the support level of $2,270, with a target of reaching $2,750, which could signal a bullish reversal. The strategy is to buy at the support levels while maintaining a positive outlook in line with Bitcoin (BTC) trends.

• Support: 75,000 THB / 2,270 USD
• Resistance: 95,000 THB / 2,750 USD

Pepe (PEPE)

Pepe (PEPE) delivered returns of 35.72% last week, with continued strong buying momentum. It is poised to test the resistance target at $0.000013. However, the rapid price increase may trigger profit-taking activity. Monitor the support level at $0.0000098, which could serve as a buying opportunity. If it falls below this level, it would be wise to exit the position.

• Support: 0.00032 THB / 0.0000098 USD
• Resistance: 0.00046 THB / 0.000013 USD
  

Shiba Inu (SHIB)

Shiba Inu (SHIB) recorded gains of 31.32% last week, indicating a bullish reversal. The strategy is to buy on dips or above the support level of $0.000015. The price trend remains positive, with a short-term profit target at the resistance level of $0.000022. Given the strong price movement, wait for buying opportunities at the support level.

• Support: 0.00056  THB / 0.000015  USD
• Resistance: 0.00074 THB / 0.000022 USD

Investment Trends 

Bitcoin (BTC) posted nearly 10% returns in September, marking one of the best September performances in its history. Historically, when Bitcoin delivers positive returns in September, it tends to continue generating strong returns through the end of the year.

The correlation between Bitcoin and the S&P 500 index is nearing 1, the highest level in months. This suggests that investors may ease their concerns about a recession and gradually invest in stocks in the fourth quarter, positively impacting Bitcoin.

China's economic stimulus measures are increasing liquidity in the economy, which should also benefit the cryptocurrency market. Additionally, the rising issuance of stablecoins indicates growing demand in the crypto market.

The U.S. non-farm payroll numbers will be announced on Friday, October 4, with clarity on employment figures for the period. The U.S. unemployment rate is anticipated to remain the same as last month, at 4.2%. If these figures meet expectations, it could positively influence Bitcoin prices by alleviating recession fears.

Many altcoins are beginning to show signs of bullish reversals, especially among new Layer-1 blockchain projects, AI-related tokens, meme coins, and certain DeFi projects. Investors may consider gradually investing in these assets, as a mini-altcoin season could emerge with Bitcoin’s dominance declining.

Overall, Bitcoin is expected to maintain a positive trend throughout the fourth quarter of this year, making it ideal for gradual investments from the beginning of October.

References

• https://cointelegraph.com/news/bitcoin-targets-70k-stablecoin-inflows-china-rally 
• https://www.theblock.co/post/318579/us-spot-bitcoin-etfs-log-highest-inflow-day-since-june-two-month-high-in-total-value 
• https://www.theblock.co/post/318584/blackrocks-spot-ethereum-etf-surpasses-1-billion-in-value-for-the-first-time 
• https://cointelegraph.com/news/propelled-crypto-inflows-us-etf-assets-hit-record-10-trillion 
• https://cointelegraph.com/news/solana-may-hit-330-reach-50-eth-market-cap-van-eck 
• https://cointelegraph.com/news/robinhood-revolut-eye-stablecoin-market-report 
• https://cointelegraph.com/news/pay-pal-enables-business-accounts-buy-sell-trade-crypto 

Disclaimers

• Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
• Past returns or performance of digital assets do not guarantee future returns or performance. 

Remark: views, information, knowledge, and opinions are considered as content that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor the content presented constitute investment advice.