Bitcoin Could Rally Big as U.S. Loses AAA Rating, Report Finds
The post Bitcoin Could Rally Big as U.S. Loses AAA Rating, Report Finds appeared on BitcoinEthereumNews.com. Bitcoin (BTC) and gold are expected to be the biggest winners in the recent downgrade of US ratings from triple A to Aa1 by Moody’s. Analysts have observed a growing correlation between Bitcoin, gold, and the stock market as they gear up for a massive run. Bitcoin (BTC) has received a major boost after Moody’s downgraded the US’s ratings from Aaa to Aa1. According to the report, investors may be forced to resort to gold and its digital version to escape from the “shaky economy.” The Background The US president, Donald Trump, was reported to have failed to pass a key vote on his spending bill after facing strict opposition from the “Republican fiscal hawks.” Meanwhile, the country’s national debt stands at $36.2 trillion. Based on experts’ analysis, this bill could have compounded the national debt by additional trillions of dollars in the next decade. According to Moody’s, the federal deficit could increase to 9% of the economic output. Fascinatingly, this could occur by 2035. Per the report, this could be triggered by increased interest payments on debt, low revenue generation, and rising entitlement spending. International broadcast journalist Michelle Makori shared this report and highlighted that the US fiscal deficit stands at $1.05 trillion year to date. Additionally, its 10-year yield also “sits” at 4.48%, with its interest burden significantly higher than the peer nations. It is important to note that the US was equally downgraded by Fitch in 2023 and by the S&P in 2011. This implies that the US now shares the same ratings with Finland and Australia. Bitcoin (BTC) Set to Take Advantage? Analysts have explained that a significant decline in confidence in the US economy translates to a huge demand for Bitcoin and gold. Currently, Bitcoin is hovering above its crucial support level at $103k, after…
The post Bitcoin Could Rally Big as U.S. Loses AAA Rating, Report Finds appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) and gold are expected to be the biggest winners in the recent downgrade of US ratings from triple A to Aa1 by Moody’s. Analysts have observed a growing correlation between Bitcoin, gold, and the stock market as they gear up for a massive run. Bitcoin (BTC) has received a major boost after Moody’s downgraded the US’s ratings from Aaa to Aa1. According to the report, investors may be forced to resort to gold and its digital version to escape from the “shaky economy.” The Background The US president, Donald Trump, was reported to have failed to pass a key vote on his spending bill after facing strict opposition from the “Republican fiscal hawks.” Meanwhile, the country’s national debt stands at $36.2 trillion. Based on experts’ analysis, this bill could have compounded the national debt by additional trillions of dollars in the next decade. According to Moody’s, the federal deficit could increase to 9% of the economic output. Fascinatingly, this could occur by 2035. Per the report, this could be triggered by increased interest payments on debt, low revenue generation, and rising entitlement spending. International broadcast journalist Michelle Makori shared this report and highlighted that the US fiscal deficit stands at $1.05 trillion year to date. Additionally, its 10-year yield also “sits” at 4.48%, with its interest burden significantly higher than the peer nations. It is important to note that the US was equally downgraded by Fitch in 2023 and by the S&P in 2011. This implies that the US now shares the same ratings with Finland and Australia. Bitcoin (BTC) Set to Take Advantage? Analysts have explained that a significant decline in confidence in the US economy translates to a huge demand for Bitcoin and gold. Currently, Bitcoin is hovering above its crucial support level at $103k, after…
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