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<ul> 
 <li><strong>Large issuance of USDC stablecoins sparks speculation about potential market buy pressure.</strong></li> 
 <li><strong>Bitcoin market experiences increased volatility due to governmental sales and Mt. Gox repayment concerns.</strong></li> 
</ul>  
<p>The cryptocurrency market is abuzz with speculation following a substantial issuance of <a href="https://www.ethnews.com/whale-moves-1-83m-usdc-to-buy-wif-whats-next/">USDC</a> stablecoins. Recently, 248,96M USD worth of USDC was issued on the Solana blockchain, followed by 227,18M USD on Ethereum, and 199,79M USD was deposited into Coinbase by the USDC issuer. These actions are often interpreted as signals of incoming buy pressure. Historically, large and institutional investors have used newly issued Tether (USDT) to make significant market purchases, which raises similar expectations for the latest <a href="https://www.ethnews.com/stripe-jumps-back-into-crypto-embraces-usdc-for-smoother-payments/">USDC</a> activities.</p> 
<figure id="attachment_80824" aria-describedby="caption-attachment-80824" style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" class="wp-image-80824 size-medium" src="https://www.ethnews.com/wp-content/uploads/2024/07/Screenshot-2024-07-08-080417-300x226.png" alt="" width="300" height="226">
 <figcaption id="caption-attachment-80824" class="wp-caption-text">
  Source: Whale Alert
 </figcaption>
</figure> 
<figure id="attachment_80828" aria-describedby="caption-attachment-80828" style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" class="wp-image-80828 size-medium" src="https://www.ethnews.com/wp-content/uploads/2024/07/Screenshot-2024-07-08-080700-300x155.png" alt="" width="300" height="155">
 <figcaption id="caption-attachment-80828" class="wp-caption-text">
  Source: Whale Alert
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</figure> 
<h2 id="bitcoin-market-turmoil-and-future-projections">Bitcoin Market Turmoil and Future Projections</h2> 
<p>The past few weeks have been turbulent for <a href="https://www.ethnews.com/cryptoquant-ceo-discusses-bitcoins-resilience-despite-recent-government-seizure-sales/">Bitcoin</a>, driven by continued sales from the US and German governments and concerns surrounding the Mt. Gox repayments. The Mt. Gox rehabilitation trustee recently moved a large amount of Bitcoin (1,544.67 BTC) from a trustee-managed wallet to Bitbank’s hot wallet, further unsettling the market.</p> 
<p>On-chain tracking from Arkham reveals that the US, UK, and German governments hold a total of 17.43 billion USD in <a href="https://www.ethnews.com/peter-schiff-challenges-bitcoin-bullish-sentiment-amid-market-slump-questions-real-institutional-demand-for-cryptocurrency/">Bitcoin</a>. Additionally, Mt. Gox’s repayment obligations amount to 142,000 BTC, equivalent to 8.09 billion US dollars. These massive holdings are expected to be liquidated over time, adding to the market’s selling pressure.</p> 
<p>Joe Barnett, a former analyst at Blockware Solutions and now Senior Product Marketing Manager at Unchained, suggested that the German government’s potential sale of around 50,000 <a href="https://www.ethnews.com/over-1-billion-in-bitcoin-moved-to-exchanges-analyzing-the-recent-surge-and-its-market-impact/">BTC</a> could mark a market bottom. He indicated that announcing such large sales could trigger a reflexive feedback loop, where selling pressure intensifies further selling.</p> 
<p>Rachel Lin, CEO of the decentralized derivatives exchange SynFutures, forecasts that the selling pressure will continue in the coming days, primarily due to the anticipated large sales from Mt. Gox. However, if the actual sell-offs are smaller than expected, a market recovery could ensue. Lin also mentioned that if selling is primarily aimed at depressing prices, <a href="https://www.ethnews.com/mt-gox-reimburses-creditors-in-bitcoin-after-a-decade/">Bitcoin</a> could stabilize around $50,000.</p> 
<p>Jacob King, a financial analyst at WhaleWire, expressed concerns about the impact of Mt. Gox repayments, predicting that a significant portion of the Bitcoin will be sold. He warned that the low demand could push <a href="https://www.ethnews.com/german-lawmaker-advocates-for-government-retention-of-bitcoin-assets/">Bitcoin</a> into a severe bear market, though he acknowledged that long-term investors might continue to hold in anticipation of future gains.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">Mt. Gox Redemptions have started repaying customers with their <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> after over a decade! Immediately after this begun, on-chain data showed a hefty increase in selling volume from these wallets.</p> 
 <p>No Bitcoiner will say this out loud, but the majority of the $8.2 Billion in… <a href="https://t.co/VWcxBc43Sk">pic.twitter.com/VWcxBc43Sk</a></p> 
 <p>— Jacob King (@JacobKinge) <a href="https://twitter.com/JacobKinge/status/1808945903006536021?ref_src=twsrc%5Etfw">July 4, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>Bitcoin, which was valued at $320.19 when Mt. Gox went bankrupt in 2014, has since seen its price multiply over 170 times. With the advent of <a href="https://www.ethnews.com/ethereum-surpasses-bitcoin-in-blockchain-revenue-battle/">Bitcoin</a> ETFs in the United States and increasing institutional interest, the market dynamics remain complex. Moreover, the upcoming U.S. presidential elections, where pro-cryptocurrency figures like former President Trump are contenders, could further influence investor behavior.</p> 
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</div> 
<p>The post <a href="https://www.ethnews.com/surge-in-usdc-issuance-amid-bitcoin-market-slump-whats-next/">Surge in USDC Issuance Amid Bitcoin Market Slump: What’s Next?</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.</p>

Surge in USDC Issuance Amid Bitcoin Market Slump: What’s Next?

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