Interest in bitcoin has significantly dropped, and Avanti CEO fears pressure of Fed on the cryptocurrency market

Interest in bitcoin has significantly dropped

According to Google Trends, search engine searches for the word “Bitcoin” dropped to mid-November 2020 levels. At that time, BTC was worth about $16,000.

Meanwhile, Glassnode analysts came to the conclusion that clients of cryptocurrency exchanges daily withdraw 2 thousand BTC to external wallets for an amount that exceeds $66 million. According to a new report from the company, the outflow of digital currencies has been recorded since the end of May.

At the same time, the volume of bitcoins on crypto platforms returns to the April figures. Then the crypto coin reached a price maximum of $65,000.

Avanti CEO expressed concern about possible pressure of Fed on crypto projects

Avanti CEO Caitlin Long believes that the Fed may prohibit crypto companies from using the services of banks. Regulators are tightening control over the digital asset space.

However, Long believes that these measures are not intended to regulate the market, but to confront the cryptocurrency community. She stated that the authorities will not directly harm BTC or ETH, but will take action against intermediaries between users and VASP providers, that is, against banks and payment systems.

“The problem is not at all in bitcoin, ether or other cryptographic protocols, everything is fine with them. The risk may lie in the operational processes of banks,” said Long.

US calls to ban digital yuan

The People’s Republic of China authorities intend to use the digital yuan to increase their influence over competing countries. Hayman Capital Management founder Kyle Bass believes that the US should ban the circulation of national digital currency from China.

“Imagine a currency that almost has a mind of its own … It knows your account data, knows your birthday, your social security number, where you live” and exactly what you like to buy. And all of this knowledge would be sitting in the hands of the Chinese Communist Party, ”Bass said.

According to the entrepreneur, DCEP is a “digital Trojan horse”. Bass believes that the digital yuan will cause serious damage to the American financial system, and China will have the opportunity to strengthen its control over international markets.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store