Bitcoin rebounded after a significant sell-off, bouncing back to $105,000 following Moody's downgrade of US debt, which stressed investors and caused market volatility. Moody's lowered the US credit rating to Aa1, citing concerns over a soaring $36 trillion debt and increasing deficits, leading to market turbulence and rising US Treasury yields. Bitcoin experienced a 4% drop during Asian trading on May 19, highlighting its sensitivity to macroeconomic changes. Despite the downturn, the long-term outlook for Bitcoin remains positive, with traders showing caution in building short positions. Historically seen as a safe haven, Bitcoin could thrive amidst diminishing trust in fiat currencies. Additionally, a declining US Dollar Index (DXY) indicates a weakening dollar that may drive investors toward alternative assets like Bitcoin, commonly referred to as 'digital gold.' The ongoing interest in risk assets like Bitcoin suggests potential strength ahead, despite current market uncertainties.

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