Federal Reserve Bank President: Bitcoin is a Store of Value
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President of the Federal Reserve Bank of Dallas Robert Kaplan made some positive comments about Bitcoin (BTC) and central bank digital currencies (CBDCs) at the Texas A&M Bitcoin Conference 2021 hosted by Mays Business School on Friday.
Firstly, Kaplan distinguished between what he understood as Bitcoin and CBDCs noting that “I would differentiate between a cryptocurrency, like bitcoin, and the discussions that are being had about digital currency, like the digital yuan experiment in China.” The Reserve Bank president explained that the primary task for Bitcoin is gaining widespread adoption. He added that:
“Right now, it’s clear it’s a store of value. It moves a lot in value. That may keep it from spreading too far as a medium of exchange and wide adoption, but that can change, and that will evolve.”
The Fed chief also revealed that he and his team are studying Bitcoin and other cryptocurrencies arduously and will continue to do so.
Speaking on CBDCs, Kaplan emphasized that:
“The discussions around the world on digital currency are slightly different in that a digital currency won’t necessarily be a store of value.”
The Fed chief noted that “If you’re worried about the value of the underlying currency, digital currency is likely to be, for example in China, tied to the value of the underlying currency,” adding that it is also “a way of ease of payment, domestic payments first, getting money to where it’s needed.”
Key BTC Levels to Watch — April 20
Bitcoin has come under immense selling pressure since its sharp rejection from the $61k level on Sunday. The benchmark cryptocurrency is now trading along a steep downward-facing trendline, as it faces a real risk of touching the $50k region over the coming days.
That said, bulls have to post an impressive push above the trendline and the critical $56,700 resistance to gain any bullish traction.
In the meantime, BTC might have at a bullish rally over the coming hours, as we have recorded the emergence of a double-bottom bullish pattern, supported by oversold conditions in higher timeframes. How Bitcoin reacts to this price setup could determine where it goes next.
Meanwhile, our resistance levels are at $55,000, $56,000, and $56,700, and our key support levels are at $53,400, $52,500, and $51,400.
Total Market Capitalization: $1.97 trillion
Bitcoin Market Capitalization: $1.02 trillion
Bitcoin Dominance: 51.8%
Market Rank: #1
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