The global rise of Central Bank Digital Currencies (CBDCs) introduces both opportunities and challenges for the crypto market. CBDCs, backed by central banks, enhance transaction efficiency and financial inclusion but may compete with decentralized cryptocurrencies like Bitcoin (BTC). Unlike BTC, CBDCs are tied to fiat, lacking its scarcity and independence from state control, limiting their appeal as a store of value. However, CBDCs could pressure BTC by offering regulated alternatives, potentially reducing demand if adoption grows. BTC’s decentralized nature and fixed supply may still maintain its edge amidst rising competition.