A significant new batch of Circle’s stablecoin was minted on Wednesday and reported by Whale Alert, a Twitter account that automatically posts about notable transactions in the cryptocurrency sector, including exchange transfers, mints, and large transfers between individuals.
According to a new Twitter post by the account, a batch of 3,000,000 USDC was minted at the USDC Treasury, which comes at a time where the price of Bitcoin has dipped further to $8,000. Interestingly enough, a total of 4 million USDC were minted in the past few days, which adds up to 7 million with the latest mint.
While it is unknown whether the same crypto whale sought to bring in a significant amount of money to the cryptocurrency market, the event can be still considered as a bullish one given that the market went even lower, resulting in an uncertain trading environment where Bitcoin’s further price action can affect the altcoin market as well. With the latest minting of USDC, it is likely that buying pressure will shortly increase as a notable sum of fiat money has entered the market.
At the time of writing, the price of Bitcoin is down by 1.04% since the previous day, 4.55% in the last week and 21.26% compared to the last month. Bitcoin experienced a massive correction since its bullish rise in July, falling from almost $14,000 to $8,000. The market’s most popular asset swiftly fell from around $10,0000 to $7,500 following the launch of bitcoin futures platform Bakkt.
Some regard the launch of the institutional platform as the cause of the market’s plunge, given that the exchange had a daily trading volume of a meager 73 Bitcoins on its first day.
While the crypto community still believes in the long-term future of Bitcoin, both traders and experienced analysts are unsure over the short-term direction of the market. The halving event, which is set to occur in May 2020 and will reduce Bitcoin’s reward block size from 12.5 to 6.25 BTC. Historically, the halving event had a positive influence on the price movement of the entire market, as bull runs take place shortly after miners accommodate to the new reward blocks.
However, the halving event is seven months away and the market may go in either direction until that moment. While some traders are optimistic that Bitcoin will soon recover, a majority of crypto enthusiasts are bearish and expect that we may dip to $6,000. In either case, HODLers who have invested on time will benefit the most by not margin trading in this critical moment.