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Market Watch Nov 7: Bitcoin Drops Below $21,000 But Retains Crucial $20,000.

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After gracing the $21,000 mark over the weekend, Bitcoin has slipped to $20,874. It has lost 1.68% of its value in the last 24 hours. This shows a retest of the immediate support level but has bullish implications as well.

Analysts say the downswing was necessary to blow off steam after last week’s impressive uptrend. Investors are likely to see a resurgence in buying pressure that pushes the BTC prices higher. Arthur Hayes, ex-CEO of BitMEX, believes central bank digital currencies (CBDCs) may give the popular cryptocurrency a run for its money in the near future. In a blog post titled “Pure Evil”, Hayes highlighted that CBDCs are in various stages of development worldwide. He said fans of financial sovereignty fear and even despise it, as they imply total government control over everyone’s money and purchasing power. Hayes described it as a full frontal assault on the ability to have sovereignty over honest transactions. He believes that the apathy of the majority will allow governments to easily take away people’s physical cash and replace it with CBDC, which will bring in a utopia of financial surveillance.

Hayes sees an unlikely ally in the form of domestic commercial banks that will impede the government’s ability to implement the most effective CBDC architecture for controlling the general populace. He said a government could either make the central bank the only node in the digital network or use commercial banks as nodes in a less radical overhaul of the financial system in order to implement the CBDC. The expert foresees buying Bitcoin becoming increasingly difficult or outright impossible.

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