Key Notes
- Moody's recent downgrade of the US credit rating and Japan's economic struggles, including record-high 40-year bond yields and a GDP contraction.
- This environment has strengthened Bitcoin’s position as a hedge, with its price nearing new all-time highs.
- Bitcoin-focused company Metaplanet experienced a strong rally on the Tokyo Stock Exchange following stellar Q1 results.
Bitcoin BTC $96 611 24h volatility: 2.1% Market cap: $1.92 T Vol. 24h: $29.09 B price is showing a bullish pattern, with analysts anticipating a “Golden Cross” formation ahead that can set the stage for the next leg of the rally to new all-time highs. While Moody’s downgraded US credit ratings, citing fragility in the US economy, BTC is showing strength with its market dominance on the upside once again.
Bitcoin Price Teases a Golden Cross Formation Ahead
As per the chart pattern on TradingView, Bitcoin price is on the verge of confirming a “golden cross” pattern. This bullish signal occurs when the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA, indicating short-term strength outperforms the broader trend. Historically, this setup has often preceded significant price rallies.
BTC price chart | Source: TradingView
The golden cross doesn’t guarantee a rally always, but in most cases, and follows closely after a “death cross”, its bearish counterpart. A similar sequence played out in late 2024, with a golden cross emerging after a death cross. This pattern paved the way for Bitcoin’s surge past $70,000 in November and an eventual all-time high above $109,000 in January this year.
Will US Debt Concerns Push BTC to the Upside?
On May 16, Moody’s Investors Service lowered the US sovereign credit rating from its top-tier “Aaa” to “Aa1,” citing mounting concerns over the national debt, which has surged to $36 trillion.
On the other hand, the bond market shows signs of major stress with rising Treasury yields, and a growing sovereign risk premium. Bitcoin (BTC) could emerge as a potential hedge in such a situation while presenting a bullish case for the cryptocurrency.
Crypto is loving the Moody’s downgrade:
Bitcoin is now 4% away from a new all time high and up over +40% since its April low.
As the US Dollar weakens and uncertainty rises, Bitcoin and Gold are thriving.
Instability is Bitcoin’s best friend. https://t.co/PNaycxNX3m pic.twitter.com/OlGfzA1ewq
— The Kobeissi Letter (@KobeissiLetter) May 18, 2025
Japan’s 40-year government bond yield has surged to its highest level in over two decades, signaling growing unease in the financial markets. Prime Minister Shigeru Ishiba described the situation as “worse than Greece,” underscoring the severity of the economic challenges facing the nation. The troubling bond market development coincides with a contraction in Japan’s GDP.
But on the same day, Bitcoin holding company Metaplanet witnessed a strong rally at the Tokyo Stock Exchange after stellar Q1 results, and acquired another 1000 BTC earlier today.
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Highlights of BTC Bull Token
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Payment Methods: Cryptocurrency, credit card
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Ticker: BTCBULL
The project employs a mechanism called milestone farming. Once Bitcoin hits $150,000, $BTCBULL will activate Bitcoin airdrops, distributing rewards based on holders’ token balances. This reward system continues at every subsequent $50,000 milestone, scaling alongside Bitcoin price, potentially reaching $1 million and beyond.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
