Today in the crypto world, Bitcoin is expected to undergo a short consolidation phase, but the potential for new all-time highs remains strong as July progresses. Exciting developments include the historic passing of the GENIUS Act by former US President Donald Trump, marking the first comprehensive stablecoin legislation in the United States.
Meanwhile, a significant $9.6 billion Bitcoin transaction from a Satoshi-era whale has sparked discussion about possible market corrections. This massive Bitcoin move is observed closely as the total crypto market capitalization approaches the $4 trillion milestone.
Bitcoin’s Expected Consolidation and Growth Prospects
After Bitcoin’s recent surge to all-time highs, experts forecast a possible period of price consolidation. However, a further increase before the end of July is still on the horizon. Michael Harvey, Galaxy Digital’s head of franchise trading, explained that a pause is realistic but anticipates Bitcoin trending upwards through the year.
The best-case scenario for Bitcoin this month is a gradual, steady rise rather than a sudden spike.
Achieving new highs this month would depend on sustained inflows into US-based spot Bitcoin ETFs, continued accumulation by Bitcoin treasury firms, and an escalation of retail investor participation.
US Stablecoin Legislation Signed into Law
In a landmark move, former President Donald Trump endorsed the GENIUS Act, which enacts the nation’s inaugural stablecoin regulatory framework. This legislation, long-awaited by the crypto community, was signed into law after extensive deliberations in Congress.
The signing ceremony was notable for the presence of key cryptocurrency industry executives, including leaders from major exchanges and blockchain firms, along with prominent Republican officials.
Trump acknowledged the persistence and pioneering efforts of the crypto community, highlighting the bill as a major milestone validating their work.
Large Bitcoin Transfer Raises Market Correction Concerns
Adding to market dynamics, a dormant Bitcoin whale from the Satoshi era activated, transferring $9.6 billion worth of Bitcoin minted in 2011. This movement, coupled with the stablecoin audit requirements under the new GENIUS Act, has caused some analysts to express concern over a potential market correction.
According to financial analyst Jacob King, CEO of WhaleWire, the new regulatory environment might trigger significant impacts in the Bitcoin market.
King commented that the enforcement of audit requirements on stablecoins could deflate what he describes as the largest financial bubble in history, noting that Bitcoin’s value is heavily supported by speculative money.
