Could Bitcoin eventually benefit from Fitch’s downgrade of the U.S. credit rating? noshitcoins investigates.
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.
Traders are now contemplating if Bitcoin’s digital scarcity and censorship resistance can offer refuge from the widespread"flight to safety" movement, instigated by the deteriorating credit score of the world’s largest economy.from May hinted at a potential domino effect, where a downgrade of U.S. Treasury debt could lead to further downgrades in the financial sector. Notably, only Fitch and S&P have marked U.S.
This stability indicated that investors were not panicking about the immediate impact of the downgrade. A potential reason is that the U.S. Treasuries are considered one of the safest investments globally because they are backed by the U.S. government. The issuer guarantees that it will repay the debt on the specified maturity date, including interest.Note that the recent daily yield fluctuation appears less significant given the 5-year government note yield's consistent rise over two weeks.
The resilience of U.S. Treasuries Credit Default Swaps and the strengthening dollar, as per the DXY Index, suggests that investors might be enhancing cash holdings in anticipation of market turmoil.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin Miner Genesis Digital Assets Opens 3 New Data Centers in South Carolina – Mining Bitcoin NewsGenesis Digital Assets (GDA) revealed it has opened three new bitcoin data centers in the western region of South Carolina.
Read more »
Bitcoin, Ethereum Technical Analysis: BTC Surges Towards $30,000, Following Latest Microstrategy Filing – Bitcoin NewsBitcoin moved towards the $30,000 level on Aug. 2, as markets reacted to the latest filings by Michael Saylor’s Microstrategy.
Read more »
Bitcoin Ordinals Team Launches Non-Profit to Support Bitcoin NFT DevelopersOrdinals creator Casey Rodarmor will be one of the four board members of the new initiative.
Read more »
ETF Analysts: Spot Bitcoin ETF Approval Odds at 65% Amid Pressure From Blackrock – Bitcoin News'The odds of a spot bitcoin ETF launching this year are up to 65%, in our eyes,' ETF analysts James Seyffart and Eric Balchunas say.
Read more »
KPMG Study Highlights Bitcoin Mining's Potential to Shrink Carbon Footprints – Bitcoin NewsKPMG's analysis describes how bitcoin miners, seeking proximity to inexpensive renewable energy sources such as solar and wind, reduce costs.
Read more »
MakerDAO’s MKR, Ripple’s XRP and Stellar’s XLM Led Crypto Gainers in JulyMakerDAO’s $MKR was the leading crypto gainer in July, advancing 47%. $XRP was just behind, adding 46.6% during the month as a U.S. judge ruled the sale of XRP tokens on exchanges as not constituting as investment contracts. \\ LedesmaLyllah reports
Read more »