On August 1, Fitch downgraded the credit rating of the US government from AAA to AA+, indicating a lack of confidence in its ability to handle fiscal responsibilities. This caused investors to move their money out of assets like stocks, silver, oil, and long-term bonds, and into cash and short-term instruments perceived as safer options. The downgrade had a broad-based impact on commodities, fixed income, and equities, including Bitcoin. However, the stability of US Treasuries Credit Default Swaps suggests that investors are not panicking about the immediate impact of the downgrade, and the strengthening dollar may lead investors to enhance their cash holdings instead of turning to Bitcoin as a safe haven.
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