Bitcoin News Today: Japan's JPYC Stablecoin Challenges Dollar Supremacy as Bitcoin Whales Accumulate

Bitcoin's illiquid supply has dropped amid a significant outflow of 62,000 BTC from long-term holder wallets since mid-October, according to Glassnode data. This movement, valued at roughly $7 billion, has reduced the pressure on BTC's price from inelastic supply, though the cryptocurrency remains below its October peak of $125,000, trading at $113,550 as of late October 2025. The shift suggests a potential change in market dynamics, with whale wallets—those holding large BTC amounts—accumulating rather than selling over the past 30 days. Glassnode noted that wallets holding between $10,000 and $1 million in BTC have seen the most consistent outflows since November 2024, signaling a lack of demand from momentum buyers and putting downward pressure on prices until spot demand rebounds.

Meanwhile, Japan has launched the world's first yen-pegged stablecoin, JPYC, a fully redeemable token backed by domestic deposits and Japanese government bonds (JGBs). Issued by Tokyo-based fintech firm JPYC Inc., the stablecoin is exchangeable 1:1 for the yen and operates under strict regulatory oversight from Japan's Financial Services Agency (FSA). This milestone challenges the U.S. dollar's dominance in the stablecoin market, which accounts for over 99% of global volume. JPYC's launch leverages Japan's unique position as a country with fully convertible currency, enabling cross-border transactions and potentially forming the backbone of Asian crypto settlements, according to a Coindesk article.

The yen's global usability distinguishes it from other Asian currencies like the Korean won and Taiwan dollar, which face strict capital controls. Japan's regulatory clarity and the yen's status as the 16.85% most traded currency pair (USD/JPY) create a fertile environment for JPYC to thrive. The stablecoin's no-fee model, supported by interest earned on JGB reserves, positions it as a sustainable alternative to dollar-backed tokens. Analysts suggest that JPYC could boost the yen's international role, particularly in cross-border payments and digital trade, while also increasing demand for JGBs, mirroring the role of U.S. Treasuries in supporting dollar stablecoins, according to an EBC explainer.

Regulatory hurdles persist for prediction markets like Kalshi, which recently sued New York regulators over claims that its sports-event contracts fall under state gambling laws. The company argues federal law preempts state jurisdiction, citing the Commodity Futures Trading Commission's oversight, as outlined in a Bloomberg Law article. This legal battle highlights broader tensions between innovation and regulation in crypto markets, with similar disputes emerging in Nevada and Maryland.

The stablecoin market's evolution and regulatory debates underscore a pivotal shift in digital finance. While JPYC's launch signals Japan's ambition to lead multi-currency digital assets, Bitcoin's liquidity dynamics and regulatory uncertainty for prediction markets illustrate the sector's ongoing challenges.