Just hours after Bitcoin’s price took a tumble into the mid-$7,000 range, Whale Alert detected that three million new USDC had been minted by the Treasury. This was done most likely by a whale in order to purchase other cryptocurrency assets in a slumping market — a common practice by big spenders.
Just recently BeInCrypto reported on the successful Oct 31 audit of the total USDC in circulation. Now, it looks like there’s been a little bit more tacked on, thanks to an unknown trader who minted a fresh three million USDC, plausibly to buy Bitcoin during this market downturn.
Whale Alert Catches Latest USDC Minting
It is unknown at this time who the entity may be, but the transaction was first revealed by Whale Alert (@whale_alert), a service that detects and reports large movements of cryptocurrency.
💵 3,000,000 #USDC (3,005,442 USD) minted at USDC Treasury
— Whale Alert (@whale_alert) November 21, 2019
After creation, it appears the new USDC made its way to Poloniex. This is not surprising, but there is no telling which other assets, if any, have been purchased so far. It would certainly not be the first time that someone created fresh USDC right as Bitcoin took a downturn.
Just over a month ago, several million new tokens were minted, possibly by multiple entities, which coincided with Bitcoin dipping down below $8,000. Some months prior to that, when the market dropped to $9,500, one million USDC was brought into circulation.
Business As Usual For Traders
Most likely all of this is just institutional money being savvy and following the rule of buying low. Assuming that the whales bought Bitcoin during these dips and waited for the market to recover, which it did the previous two times, then they would certainly reap hefty rewards. One can imagine a power trader is setting themselves up for what will hopefully be a strong rebound.
While $3 million isn’t enough to really move the Bitcoin market, assuming it’s even going there, it is enough to secure a nice position for when prices rise again. It is not unlikely that we could see further mintings of USDC if the price continues to falter.
Images courtesy of Shutterstock, Twitter.
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