Bitcoin Trading Sideways as ECB Starts Work on a Digital Euro

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3rd Party Analysis 15 Jul 2021

Key Takeaways

  • Bitcoin and peers keep steady and little changed as the ECB announces the launch of a digital euro project
  • Bitcoin hovers around $32,500 on Thursday, while ether is pinned below $2,000

Bitcoin Trading Sideways

Bitcoin and cryptocurrencies are trading sideways on Thursday. This comes one day after the European Central Bank confirmed it will start working on creating a digital version of the single European currency.

The world’s biggest digital currency remained steady in Wednesday trading. Bitcoin hovered near $33,000 per token. The price of the flagship crypto coin now sits at $32,500, virtually flat on the day. Other cryptos are also flatlining today with ether gyrating around $1,960, down about 1% in the session.

ECB Announces the Launch of a Digital Euro

Meanwhile cryptocurrencies continue to be in the mix of red and green. Consequently, the total market capitalization of the crypto space is higher by 2.2% over the last day. In parallel, and driving this confused market, the European Central Bank gave the green light to a digital euro pilot project.

Indeed, ECB officials met yesterday with the intention to reach a conclusion on whether Europeans would need a digital version of their euros. As it turned out, the central bank of Europe decided to press ahead with an exploratory phase that would last two years.

“Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money,” Christine Lagarde, the ECB president, said. She also mentioned that the central bank digital currency (CBDC) would only “complement” the existing monetary system. Therefore, the digital euro is in no way here to replace physical cash.

“A digital euro must be able to meet the needs of Europeans while at the same time helping to prevent illicit activities and avoiding any undesirable impact on financial stability and monetary policy,” the ECB statement said. The projection for a full implementation of a digital euro currently stands at four years.

Meanwhile, Bitcoin and the rest of cryptocurrencies, remained calm. The digital coins await their next price catalyst that would provide enough fuel for them to shoot higher. Thus, cryptos continue to try and break out of the current slump that has been narrating prices in the last weeks.

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