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Could a Bitcoin bull run be triggered by Fitch’s US credit rating downgrade?

Published 08/03/2023, 03:05 PM
Updated 08/03/2023, 04:40 PM
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On Aug. 1, a significant event occurred within the financial world: Fitch, a reputable credit ratings agency, lowered the credit rating of the United States government from the pristine AAA to AA+. This downgrade signaled diminished confidence in the U.S. government’s ability to handle its fiscal responsibilities effectively.

The downgrade nudged investors into a cautious stance, leading many to move their money out of assets like stocks, silver, oil and long-term bonds. Instead, they favored cash and short-term instruments, which are perceived as safer options in uncertain times.

S&P 500 futures (blue), WTI oil futures (cyan), U.S. 20-year notes (yellow), silver (orange). Source: TradingView
U.S. 5-year Treasuries credit default swaps value. Source: World Government Bonds
U.S. 5-year Treasury yield, 12-hour chart. Source: TradingView
U.S. Dollar Index (DXY). Source: TradingView

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