Bitcoin and the rest of the crypto market are at a pivotal moment. Either a new bull market is beginning, or a deeper fall into a bear market is next.\nHow will the market react to the potential emergence of a digital dollar coming out of next week\u2019s Senate hearing on the topic?\nCrypto Dad Pushes United States To Embrace A Central Bank Digital Currency\nNext Tuesday, the United States Senate Banking Committee will hold an important hearing on the potential of a digital dollar.\nThe virtual hearing, dubbed \u201cThe Digitization of Money and Payments\u201d takes place on June 30, 2020.\nThe hearing is expected to discuss the potential tokenization of the dollar and the creation of a \u201cCBDC.\u201d CBDC stands for Central Bank Digital Currency, similar to how China has named its digital yuan as DCEP (Digital Currency Electronic Payment).\nSpeaking at the hearing is former Commodity Futures Trading Commission chairman J. Christopher Giancarlo.\nGiancarlo was affectionately dubbed \u201cCrypto Dad\u201d in the years prior due to his support of the crypto industry.\nRELATED READING | GOLD TO BECOME MORE LIKE BITCOIN IN COMING DECADE AS WORLD GOES DIGITAL\nNow, he\u2019s pouring his efforts into the Digital Dollar Foundation, a not-for-profit that focuses on research and discussion surrounding a tokenized dollar.\nThrough a partnership with Accenture, Crypto Dad seeks to push the United States towards a new era of a digital dollar.\nThe digital dollar was recently mentioned as part of a draft of the CARES Act, however, the mention was later removed when it reached the House of Representatives.\nThe United States moving to a crypto-like version of the dollar will help the country keep its currency in power during the emergence of the digital yuan.\nCan a Digital Dollar Save USD From Bitcoin, the Yuan, and Other Currencies?\nIt also could help the dollar compete with Bitcoin and other cryptocurrencies in the long haul as digital money.\nThe event also takes place on the last day of the month. Monthly candle closes in the cryptocurrency market are especially important.\nAnd with nearly a $1 billion in options contracts expiring in Bitcoin this coming Friday, the following week when the hearing and monthly close takes place, could be especially volatile as a result.\nIt\u2019s not just due to the crypto market\u2019s response to the hearing, either. The dollar itself is facing its most brutal environment yet.\nRELATED READING | \u2018WANING\u2019 SAFE HAVEN STATUS LEAVES THE DOLLAR VULNERABLE TO BITCOIN\nAnalysts expect the dollar to drop as much as 35% against competition currencies. This could also boost Bitcoin and other crypto assets as well, which are bound to the dollar by way of a USD pair.\nUnless the United States releases extremely positive news regarding a new digital dollar that brings renewed trust and comfort in holding the asset, markets could catch fire as the dollar burns down.\nFeatured image from Shutterstock.