Bitcoin ignores Moody’s US debt downgrade, rallies back to $105K after profit-taking sell-off

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Source: GlassnodeThe BTC price drop occurred after macroeconomic headwinds intensified, with a historic downgrade of the US credit rating by Moody’s and a rise in US Treasury yields, raising speculation around risk assets such as Bitcoin’s near-term trajectory.

The 10-year Treasury yield opened at 5.53% post-downgrade on May 19, while the 30-year yield followed a similar upward trend, currently at 4.98%, reflecting investor concerns over higher borrowing costs for the US government. The Kobeissi newsletter highlighted that historically, past downgrades led to mixed yield reactions—yields fell 35% after the 2011 S&P downgrade but rose 23% after Fitch's 2023 downgrade.

Adler Jr said,“Overall, despite the prevailing “risk-off” sentiment (typically a headwind for high-volatility assets), Bitcoin may find itself in a relatively stronger position in the current environment due to its “digital gold” narrative and the supportive effect of a weaker dollar.”Related: $107K fakeout or new all-time highs? 5 things to know in Bitcoin this weekThis article does not contain investment advice or recommendations.

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Author / Journalist: Cointelegraph by Biraajmaan Tamuly

Category: Crypto

Markets: United States

Topics: Treasury Dollar Price Downgrade Yield Investors Assets 2023 Bitcoin Moody’s Bitcoin’s

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-19 @ 18:17:19 (10 hours ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 631 words

Reading Time: 4 minutes read

Sentences: 28 lines

Sentence Length: 23 words per sentence (average)

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Copyright Owner: © Coin Telegraph

News ID: 28846408

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