Moody’s Downgrades US Credit Rating: What It Means for Bitcoin
bitcoin’s price is in a holding pattern following the US credit rating downgrade by Moody’s.The cryptocurrency currently trades at roughly $103,000, which is a 2.8% drop from its monthly peak.Its total market value now stands at $2.045 trillion.
Moody’s, one of the world’s top credit rating agencies, dropped the US credit rating from Aaa to Aa1. This comes due to the worsening fiscal health of the US. The total public debt has reached over $36.8 trillion.
- Moody’s joins S&P Global and Fitch Ratings in cutting the US triple-A rating.
- US public debt has spiked to over $36.8 trillion.
- The rating change may boost Bitcoin, viewed as a safe-haven asset.
Bitcoin has outperformed the stock market in recent crises, like the COVID-19 pandemic and after the Liberation Day speech. its price seems to benefit from supply and demand factors. Fewer Bitcoins are available on exchanges,while demand grows. Companies and Spot Bitcoin ETFs have increased their holdings.
Technically,Bitcoin is in a consolidation phase on the daily chart. However, it shows signs of a bullish breakout. These include a bullish pennant pattern and a cup-and-handle pattern. These suggest higher prices in the coming weeks, potentially reaching $110,000.
