Could a Bitcoin bull run be triggered by Fitch’s US credit rating downgrade?
Fitch downgraded the US credit rating due to its government debt and potential challenges in handling its fiscal responsibilities. Will Bitcoin price benefit from this decision? On Aug. 1 a significant event occurred within the financial world: Fitch, a reputable credit rating agency, demoted the credit rating of the U.S. 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) , US 20y notes (yellow), Silver (orange). Source: TradingView As evident from the above chart, the reaction to Fitch's decision to downgrade the U.S. government's credit rating was...