Key takeaways:
Bitcoin recovered from its sharp sell-off from $107,000, suggesting it functions as a hedge against uncertainty for investors reacting to Moody’s recent downgrade of US debt.
Moody’s downgraded the US credit rating to Aa1, citing a $36 trillion debt and rising deficits, causing market turbulence and a spike in US Treasury yields.
Despite short-term pressure from macroeconomic shifts, Bitcoin’s long-term outlook remains bullish due to cautious shorting and a weakening US dollar.
Bitcoin (BTC) price faced a sharp 4% correction during the Asian trading session on May 19, tumbling from an “important level” as noted by Glassnode. The data analytics platform indicated that Bitcoin’s surge stalled just below $106,600, a critical level where 31,000 BTC are held. This supply cluster, formed on Dec. 16, 2024, reflects firm holder conviction, as investors have neither sold nor averaged down despite price fluctuations.
Bitcoin price cost