The European Central Bank (ECB) Confirmed Digital Euro Project Is Officially Underway

Bingbon Chart

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The past 24 hours have been very tough for Bitcoin investors. After adjusting sideways for a few weeks, Bitcoin finally broke down below the $30,000 support zone for the first time this month. Bitcoin’s price has roughly halved from a record high three months ago. The decline has basically cost BTC the majority of gains it had accumulated during the 2021 bull run. Bitcoin held around $29,900 after breaking below the important $30,000 level yesterday. 

Concerns about regulatory policy risks and fading institutional demand have led to selling pressure over the past few weeks. Bitcoin’s longer-term trend depends on the situation of mainstream adoption across the U.S. and Europe. Bitcoin could drop towards the $28,400 zone since the $30K key support level is broken. With all these bearish indicators, it is difficult to determine how long the current downward bitcoin trend continues. We need to turn our attention to how strong the rebound is in the short term to judge the bulls’ determination to recover the $30,000 mark. One of the few signs of optimism is that long-term holders, at least, have not yet started selling in large numbers.

Today’s Headline

The Governing Council of the European Central Bank(ECB) approved the possible issuance of the digital euro. There will be a two-year investigation to determine what a digital euro would design like and how it would launch. The digital euro would act as an alternative to cryptocurrencies and would be available to all citizens, regardless of their access to the internet or bank accounts. The digital euro would be designed to adapt user preferences and with technical suggestions from both intermediaries and merchants. The ECB has committed to involving citizens, merchants, and the payments institutions. It also promised to involve the European Parliament. In theory, the digital euro project will be a multi-collaborative and democratic affair.