📉 Why Did Bitcoin Drop?
→ Analysts point to U.S. banks' move to create their own stablecoins as one possible reason.
💵 What Happened?
Major U.S. banks like JP Morgan, Bank of America, and Citibank are reportedly discussing the issuance of a joint stablecoin.
What’s a stablecoin?
In simple terms, it’s a digital currency issued by banks — think of it like points or gift cards.
→ Customers trust it, and if something goes wrong, banks are expected to back it up.
🧠Why Is the Market Nervous?
If banks issue their own coins, people might start using them instead of Bitcoin.
That could lead to an oversupply of crypto options, reducing Bitcoin's scarcity — and possibly driving prices down.
In short, bank-issued coins could become competitors to Bitcoin.
⚖️ How Is Bitcoin Different?
Bitcoin was created to prevent governments and banks from printing unlimited money.
So the rise of stablecoins from banks is philosophically the opposite of what Bitcoin stands for.
📌 Conclusion
This drop doesn’t seem to be due to a fundamental issue with Bitcoin itself,
but rather a reaction to fear sparked by the U.S. bank stablecoin news.
Especially since Bitcoin was near its all-time high,
the market may have reacted more sensitively than usual to such news.
💬 One-line summary:
“The news that banks are planning to issue their own stablecoins may have triggered fears that Bitcoin’s dominance is being challenged — leading to a price drop.”
