Moody's don cut US Treasury credit rating, show say fiscal risk dey and make Bitcoin fine pass for traders.
Moody’s don grade down America government long-term credit rating from Aaa go Aa1. This one mean say America don lose dem last AAA status among all di big rating agencies for dem government debt. Di main tins dem talk about na say America federal debt dey grow too fast, with di debt-to-GDP ratio wey dem project say e go climb from 100% for 2025 go 118% by 2035. Also, di interest cost wey dey rise, dem expect say e go reach 30% of government money by 2035. Even with di downgrade, Moody’s still change di outlook to stable, wey show say America economy strong, dem financial markets deep, and di US dollar strong well well as global reserve currency. Di recent 20-year Treasury auction show say demand don weak and yield don high, wey mean say investors dey careful. Past downgrades, like di ones by S&P for 2011 and Fitch for 2023, cause market wahala sharp sharp but dem no really get long-term effect on how much people dey demand US Treasuries or di global reserve situation. Technical rule changes dey often allow institutions to still hold US debt, and big buyers like central banks and pension funds dey give continuous support, wey dey limit di overall market wahala. For crypto traders, di downgrade mean say structural fiscal risk dey grow, no be immediate crisis. E dey highlight say alternative value stores like Bitcoin (BTC) dey become more attractive, especially as ETF money dey continuously flow into BTC amidst macroeconomic uncertainty and policy worries. Even though di downgrade fit cause short-term market turbulence and downside risk for traditional US assets, strong demand for US Treasuries and technical factors suppose to reduce di long-term effect. Crypto traders suppose to note Bitcoin strong stand and di potential for continuous demand as institutional investors dey look for alternatives with di rising US fiscal risk.
Bullish
Moody's wey dem reduce US Treasury rating, na warning for how di system be, no be say financial crisis don com. Before before, when credit rating dey fall, e dey cause small, short-term kasala for US assets, but e no really affect how pipo dey want US Treasury or US dollar for di whole world. But dis recent fall show say US money matta go soon get big problem, like di debt to GDP ratio wey dey rise and di plenty money dem dey pay for interest. For crypto traders, dis tin make Bitcoin more attractive as anoda way to save money. Di way Bitcoin ETFs dey get plenty money come in, especially as gold ETFs dey lose money and pipo dey careful about US stock and bond, show say big big companies don dey look Bitcoin now because of dis policy wahala. For short term, traders fit see plenty kasala, but technical and liquidity tins dey support Bitcoin to stand strong, meaning say Bitcoin go sabi pass traditional assets as di money wahala continue.