U.Today - The U.S. has lost its high credit rating over the growing national debt and deficits. International journalist Michelle Makori says Bitcoin and gold are worth watching now, hinting she expects these two safe-haven assets’ prices to skyrocket.
"Watch Bitcoin and gold," Makori says
The journalist shared that, according to Reuters, Moody’s agency has downgraded the U.S. credit rating from AAA to AA1 based on “rising debt and interest ’that are significantly higher than similarly rated sovereigns.’”Currently, the U.S. national debt constitutes $36.2 trillion. Earlier this week, U.S. lawmakers blocked a bill proposed by President Trump to extend the tax cuts he implemented during his first presidential term in 2017. Reuters pointed out that the bill would have added trillions of dollars to the already swollen U.S. debt during the next decade.
Michelle Makori believes that this development provides a perfect soil for Bitcoin and gold to surge in prices, which often happens during economic uncertainty and negative readings of key economic metrics. She pointed out that currently fiscal deficit in the U.S. stands at $1.05 trillion; “10-year yield: 4.48% Interest burden: Significantly higher than peer nations,” she cited Reuters.
“America now shares a credit rating with Austria and Finland,” the journalist said, “Hard assets don’t lie. Watch Gold and Bitcoin.”
Bitcoin stays under ATH, despite US-China trade deal
A report published by the on-chain data aggregator Santiment reveals a correlation between stock markets and crypto. The tweet underscores that despite the trade tariff pause negotiated by the U.S. and China for 90 days a week ago, “markets remain within striking distance of all-time highs.” Bitcoin remains down along with the S&P 500 and gold.Per data shared by Santiment, the S&P 500 is currently trading at $5,953.57, staying 3.27% below the Feb. 19 all-time high of $6,147.43. Bitcoin is changing hands at $103,502, sitting 5.33% below the January ATH of $109,026.02.
As for gold, it is now trading at $3,196.80 per ounce after it hit an all-time high of $3,509.90 on April 22. Now it is almost 10% below the ATH.
Major crypto analyst from the Netherlands Michael van de Poppe believes that Bitcoin is currently showing a healthy consolidation, targeting a new all-time high soon: “Calm consolidation of #Bitcoin before the next big breakout in the next weeks towards the ATH.”
This article was originally published on U.Today