US Treasury Rejects CBDC Plans Amid Bitcoin's $73k Support Test

VADODARA, February 4, 2026 — US Treasury Secretary Scott Bessent declared the administration has no plans to introduce a central bank digital currency (CBDC), according to a Walter Bloomberg report. This latest crypto news arrives as Bitcoin tests the $73,530 support level amid extreme market fear. Bessent's comments directly responded to Representative Warren Davidson, who previously labeled CBDCs as "communist currency."

Investigation: The Official CBDC Stance

Walter Bloomberg reported Treasury Secretary Scott Bessent's statement on February 4, 2026. Bessent confirmed the administration lacks CBDC introduction plans. He extended this position to the Federal Reserve. Representative Warren Davidson prompted the remarks during congressional questioning. Davidson's historical opposition frames the political context.

Market structure suggests this creates immediate regulatory clarity. Consequently, private stablecoin projects face reduced competition from a potential digital dollar. The Federal Reserve's official website maintains research pages on digital currencies, creating a data contradiction. This institutional divergence warrants scrutiny.

Market Context & Historical Precedent

Historically, US regulatory announcements trigger volatility clusters. The 2021 infrastructure bill debate caused similar market dislocations. In contrast, the EU advances its digital euro project through the Qivalis consortium. This transatlantic policy split creates arbitrage opportunities.

, recent regulatory developments highlight this divergence. For instance, BBVA joined the EU's Qivalis consortium for euro stablecoin development. Simultaneously, US lawmakers demanded halting the WLFI bank charter over UAE ties. These parallel actions reveal fragmented global approaches.

Technical Architecture & Price Action

Bitcoin currently trades at $73,530, down 2.86% in 24 hours. The weekly chart shows a critical support cluster between $72,800 and $73,200. This zone aligns with the 0.618 Fibonacci retracement from the recent all-time high. A breakdown below $72,800 would invalidate the bullish structure.

On-chain data indicates increased exchange inflows at this level. Glassnode liquidity maps show a concentration of bid liquidity around $72k. The 50-day moving average at $74,200 acts as immediate resistance. Market analysts watch the RSI hovering at 42, suggesting neutral momentum.

By The Numbers

Why It Matters

The Treasury's CBDC rejection matters for institutional allocation. Private dollar stablecoins now face less sovereign competition. This could accelerate Tether and USDC adoption cycles. However, the Federal Reserve's continued research creates policy uncertainty.

Market structure suggests this announcement temporarily reduces regulatory overhang. Consequently, crypto-native projects may attract capital. The divergence from EU approaches highlights geopolitical fragmentation. This fragmentation increases systemic risk during liquidity events.

Expert Commentary

The Treasury's position creates short-term clarity but long-term questions. If the Fed independently pursues digital dollar research, we face conflicting signals. This administrative divergence mirrors the 2023 banking crisis response patterns. Market participants should monitor Fed research publications for technical developments.

CoinMarketBuzz Intelligence Desk synthesized this institutional sentiment.

Market Outlook & Price Scenarios

Two technical scenarios emerge from current market structure. The bullish case requires holding the $72,800 support. The bearish case triggers below this level.

• Bullish Invalidation Level: $74,200. A daily close above the 50-day moving average confirms trend reversal. This would target the $76,500 Fair Value Gap.
• Bearish Invalidation Level: $72,800. A weekly close below this Fibonacci support invalidates the current structure. This would target the $70,000 liquidity zone.

The 12-month outlook depends on Fed policy alignment. If the Fed contradicts Treasury statements, volatility will increase. Historical cycles suggest such divergences precede regulatory arbitrage opportunities. The 5-year horizon favors private stablecoin dominance if CBDC development stalls.