Stablecoins may be displacing Bitcoin as a payments choice

The article reports that after the U.S. Genius Act passed on July 18, 2025, Bitcoin's market price fell by about 40% to under US$70,000 and monthly Bitcoin transactions declined while stablecoin transactions rose, according to the authors.

The article examines how stablecoins have changed the payments and market role of Bitcoin since the U.S. Genius Act was enacted. The authors note the Genius Act, passed on July 18, 2025, created a legal framework for payment stablecoins with reserve backing and audit requirements. They say this framework made stablecoins more predictable and useful as a payment instrument. The piece connects those regulatory and usage changes with declines in Bitcoin transactions and its market price. Reported details: - The article notes Bitcoin was introduced in 2009 and reached a market price above US$120,000 last fall before recent declines. - It reports that since July 18, 2025, Bitcoin's market price fell by about 40% to under US$70,000. - The Genius Act is described as introducing mandatory reserve backing and clearer audit rules for payment stablecoins. - The authors cite data (Visa Onchain Analytics Dashboard and BitInfoCharts) showing monthly stablecoin transactions rose substantially while monthly Bitcoin transactions decreased by more than 20% after the Act. - The article reports estimates that 60–85% of illegal transactions that had used Bitcoin may have migrated to stablecoins. - The authors compare Bitcoin's current situation to historical speculative episodes, arguing that loss of a payments narrative can affect price and growth potential. Summary: The article argues that regulatory clarity for stablecoins has strengthened their role as a payment instrument and that this shift coincided with lower Bitcoin transaction activity and a sizable drop in Bitcoin's market price. The authors suggest Bitcoin risks being left primarily as an object of speculation if its payment role continues to shrink, and they say this could weaken its founding narrative and future growth potential. Undetermined at this time.