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The king of cryptocurrencies has once again dropped below $30,000, erasing its gains in just two 15-minute candles. At the time of writing, the price, which found buyers at $29,850, seems to have been negatively affected by the last-minute announcement. But was this event the reason for the drop? At first glance, it only seems like an excuse.
What is FedNow?
FedNow, which we announced as breaking news a few minutes ago, was a long-awaited development. The FedNow idea was introduced in 2019 with the aim of eliminating delays in fund transfers. This came after countries such as the United Kingdom, India, Brazil, and the European Union had already implemented similar systems for some time. As you know, in our country, instant payments have been possible for a long time with Fast.
The new service will compete with private payment systems. However, some Americans are concerned about FedNow being used as a surveillance tool before the Fed launches a full-fledged CBDC. In particular, CBDC trials often followed instant payment options in various countries.
The only thing that could be cited as a reason for the drop is that we saw the price start to melt after the announcement of FedNow.
Why are Cryptocurrencies Falling?
There is already a heated debate among the crypto communities about how digital dollars will reduce financial freedom and violate citizens’ privacy. As of 17:51, the price of Bitcoin has dropped to $29,631, and the critical threshold has been temporarily lost.
FedNow is not a system that directly affects cryptocurrencies. There are already active alternatives around the world. Therefore, unless there is another reason, we can consider the recent drop as speculative. On the other hand, in an environment where cryptocurrencies are not widely used for payments, the digital dollar or FedNow should not have such a negative impact on the price.
