Bitcoin News Update: Japan’s JPYC Stablecoin Poses a Challenge to Dollar Dominance While Bitcoin Whales Continue to Amass

According to

, the amount of Bitcoin held in illiquid supply has decreased as 62,000 have exited long-term holder wallets since mid-October. This transfer, worth about $7 billion, has eased the price pressure caused by a rigid supply, though Bitcoin is still trading below its October high of $125,000, sitting at $113,550 by late October 2025. This trend points to a possible shift in market behavior, with large holders—so-called whale wallets—adding to their positions rather than selling in the last month. Glassnode observed that wallets containing between $10,000 and $1 million in BTC have experienced the most steady outflows since November 2024, indicating limited interest from momentum traders and continued downward price pressure until spot demand picks up again.

In other news, Japan has introduced JPYC, the first stablecoin pegged to the yen, fully backed by local bank deposits and Japanese government bonds (JGBs). Developed by Tokyo-based fintech JPYC Inc., this token can be redeemed one-for-one with the yen and is closely supervised by Japan’s Financial Services Agency (FSA). This development challenges the U.S. dollar’s overwhelming presence in the stablecoin sector, which currently makes up more than 99% of global stablecoin activity. JPYC’s debut takes advantage of Japan’s status as a country with a fully convertible currency, allowing for international transactions and potentially laying the groundwork for Asian crypto settlements, as reported by

.

The yen’s ability to be used globally sets it apart from other Asian currencies such as the Korean won and Taiwan dollar, which are subject to strict capital restrictions. Japan’s clear regulatory framework and the yen’s position as the second most traded currency pair (USD/JPY at 16.85%) provide a strong foundation for JPYC’s growth. The stablecoin’s zero-fee structure, funded by interest from JGB reserves, offers a viable alternative to dollar-based tokens. Experts believe JPYC could enhance the yen’s international influence, especially in cross-border payments and digital commerce, while also increasing demand for JGBs—similar to how U.S. Treasuries underpin dollar stablecoins, according to

.

Prediction markets such as Kalshi continue to face regulatory challenges, as shown by their recent lawsuit against New York authorities over claims that their sports contracts qualify as gambling under state law. Kalshi maintains that federal regulations, specifically oversight by the Commodity Futures Trading Commission, should take precedence, as detailed in

. This legal dispute highlights the ongoing friction between innovation and regulation in the crypto sector, with similar cases arising in states like Nevada and Maryland.

The ongoing changes in the stablecoin landscape and regulatory discussions mark a significant turning point for digital finance. While JPYC’s rollout demonstrates Japan’s drive to lead in multi-currency digital assets, the evolving liquidity of Bitcoin and regulatory uncertainty for prediction markets reveal the persistent hurdles facing the industry.